In the near future, the Cyprus property market is expected to continue on its dynamic path, however, it will not be a bed of roses, and strategic planning will be crucial to navigate changes and challenges ahead. In the next couple of years, we should expect to experience moderate growth as high interest rates stabilise … Read more
Illegal and undeclared work in Cyprus is a growing trend, particularly in the construction industry, where it is approaching 25%. The Cyprus economy relies on employing people other than Cypriots, but this needs to be done with appropriate regulations. Third country personnel are attracted through illegal procedures in the promise of a job. The construction sector contributes about 15% to the island’s GDP, with optimistic forecasts for 2024. There are currently 40 projects underway in the construction sector worth €862 million.
Undeclared work is a growing concern in the construction industry, according to Labour Minister Yiannis Panayiotou. If not addressed soon, it will become a much bigger problem. Panayiotou also expressed optimism for the renewal of the collective agreement in the construction sector and emphasized the need for improving, not worsening, the terms and conditions of work.
The number of building permits in Cyprus rose to 706 in February, up from just below 600 each in January and December.
Construction and demolition debris makes up 25-30% of all waste produced in Europe. Measures have been taken in Cyprus to manage this waste, including creating treatment facilities, improving environmental controls, and increasing recycling rates. Despite efforts, illegal dumping continues to be a problem.
Cyprus’ construction sector has shown significant growth in early 2024, with an increase in building permits issued. In February alone, 706 permits were granted, contributing to a total of 1,293 permits in the January-February period. This represents a 13.1% increase compared to the previous year. The total value of permits increased by 16.9%, with a total area increase of 14.3%. The economic value of permits reached €248.9 million in February and €470.19 million over the two months. Residential building permits rose by 8.6% and non-residential buildings saw notable growth as well. Civil engineering projects had a significant increase in permits issued.
President Nikos Christodoulides stated that the construction sector, supported by the Cyprus Property Developers Association (LBDA), plays a vital role in attracting investments, promoting entrepreneurship, and positioning Cyprus as an investment destination.
Cyprus is experiencing a significant development boom with billions of euros being invested in various projects, including infrastructure improvements, new marinas, hotels, medical centers, university buildings, golf courses, schools, and residential properties. These projects are expected to bring multiple benefits to the country, transforming its landscape and contributing to economic growth. Major investments include golf resorts like Limassol Hills and Eagle Pine, as well as marinas such as Larnaca Marina and the upcoming Paralimni Marina. Education-related developments are also underway, and road infrastructure projects across the island are crucial for improving residents’ quality of life.
Projects worth €100 million are planned in Larnaca in the coming years.
The German economy grew more than expected in the first quarter, with gross domestic product rising 0.2 per cent. The economy skirted a recession thanks to the construction sector and exports.