19/01/2004 08:42
According to the latest survey of the Finance Ministry carried out in December among 220 businesses, construction companies in Cyprus are very optimistic for 2004, as businessmen estimate that the euphoria in the sector will continue.
The vast majority of the respondents estimate that the volume of their operations (52%) and the orders (54%) has increased, while only 3% believes that they fell. As for the rest, December remained at the same levels as the previous months. The difference between the positive and the negative responses on orders (+51) is the largest in 2003.
50% of the respondents anticipate that prices will increase, 49% that they will stabilize and 1% that they will drop. The difference between the positive and the negative responses (+48) is larger (by 6 points) compared to November, despite the publication of the CB circular on the bank credits to the sector.
It is worth noting that the vast majority of businesses (71%) do not intend to employ or dismiss their staff for the next three months, while 28% of the businesses state that they will increase their staff and only 1% said that they will reduce it. The difference between the positive and the negative responses (+27) is lower compared to November (+60).
Developers: Further price increases
Invited by StockWatch to commend on the figures of the Finance Ministry’ survey, Chairman of the Developers Association, Lakis Tofarides said that in 2004 there will be an increase in the sales and a stabilization in the turnover.
Mr. Tofarides anticipates that prices will further increase: “Prices are based on three factors: the cost of land, the cost of construction and other external factors. The cost of land soars due to the increased demand. At the same time, the cost of construction increases due to the increased labour cost and the increase in materials and fuel. There is also an increased demand from overseas, as property prices in Cyprus are more attractive than other European destinations”.
Figures
According to official figures, the volume of building licenses for January-October increased by 14.8% (2002: 10.7%), while the cement sales for January-November showed an increase of 8.2% (2002:11%). For the full year 2003, the construction material price index recorded an increase of 4.6% (2002: 2.4%).
The construction sector was 8% of the Cyprus GDP in 2002.
The vast majority of the respondents estimate that the volume of their operations (52%) and the orders (54%) has increased, while only 3% believes that they fell. As for the rest, December remained at the same levels as the previous months. The difference between the positive and the negative responses on orders (+51) is the largest in 2003.
50% of the respondents anticipate that prices will increase, 49% that they will stabilize and 1% that they will drop. The difference between the positive and the negative responses (+48) is larger (by 6 points) compared to November, despite the publication of the CB circular on the bank credits to the sector.
It is worth noting that the vast majority of businesses (71%) do not intend to employ or dismiss their staff for the next three months, while 28% of the businesses state that they will increase their staff and only 1% said that they will reduce it. The difference between the positive and the negative responses (+27) is lower compared to November (+60).
Developers: Further price increases
Invited by StockWatch to commend on the figures of the Finance Ministry’ survey, Chairman of the Developers Association, Lakis Tofarides said that in 2004 there will be an increase in the sales and a stabilization in the turnover.
Mr. Tofarides anticipates that prices will further increase: “Prices are based on three factors: the cost of land, the cost of construction and other external factors. The cost of land soars due to the increased demand. At the same time, the cost of construction increases due to the increased labour cost and the increase in materials and fuel. There is also an increased demand from overseas, as property prices in Cyprus are more attractive than other European destinations”.
Figures
According to official figures, the volume of building licenses for January-October increased by 14.8% (2002: 10.7%), while the cement sales for January-November showed an increase of 8.2% (2002:11%). For the full year 2003, the construction material price index recorded an increase of 4.6% (2002: 2.4%).
The construction sector was 8% of the Cyprus GDP in 2002.
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