articles | 15 May 2024

Cyprus developers highlight GDP contribution, creation of 35,000 jobs

The Cyprus Property Developers Association (LBDA) marked its 40th anniversary this week, stating that during this time it has emerged as a “dynamic advocate and representative of the land and property development sector”.

According to a statement released by the association, the LBDA has contributed more than 15 per cent to Cyprus’ Gross Domestic Product (GDP) and employed more than 35,000 individuals. Moreover, the association emphasised that the land and property development sector serves as a cornerstone of the Cypriot economy. “It was in 1983 that industry professionals, recognising the challenges of the time and the need for an association to serve as the collective voice of sector companies, proceeded with the establishment of the association, aligning it under the umbrella of the Cyprus Employers and Industrialists Federation (Oev),” the statement explained.

Highlighting the pivotal role played by industry professionals, the association noted that “through their modern and innovative projects, they have significantly contributed to the development of Cyprus“. Furthermore, the Cyprus Property Developers Association also asserted that “today it serves as a reliable social partner, leveraging the expertise of its members to enhance the work of executive and legislative authorities and contribute to efforts to improve the sector”.

What is more, the association noted that to commemorate its 40-year journey, president Yiannis Mysirlis and the board of directors recently organised an event attended by President Nikos Christodoulides, the Minister of Finance Makis Keravnos, the Minister of Foreign Affairs Constantinos Kombos, as well as the Minister of Transport, Alexis Vafeades. The event was also attended by Oev president Antonis Antoniou, as well as representatives of employers’ organisations and prominent figures from the economy and business sector.

At the event, President 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. The president also emphasised that reforming and simplifying licensing procedures are crucial to the construction sector and promoting development. “Facilitating the licensing of strategic development projects is another goal of the government, implemented through the application of the relevant law,” he said.

Meanwhile, in terms of Cyprus’ construction sector, there was an increase in building permits issued by the municipal authorities and the district administration offices in the early months of 2024. According to recent data from the Cyprus Statistical Service (Cystat) published on Tuesday, there were 706 building permits issued in February, contributing to a total of 1,293 permits granted in the January-February period. This reflects a 13.1 per cent increase compared to the same period last year, with the total value of permits increasing by 16.9 per cent and the total area by 14.3 per cent. Additionally, the number of dwelling units increased by 13.4 per cent. Moreover, the economic value of these permits indicates significant investment, reaching €248.9 million in February and totalling €470.19 million over the two months, marking a 16.9 per cent increase from the previous year.

Finally, the Central Bank of Cyprus (CBC) also reported this week that residential property values rose during the fourth quarter of 2023, primarily driven by soaring apartment prices.

Source: Cyprus Mail

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