Building Permits Rise 3.5% Year-on-Year Jan-Sept

The number of building permits issued in the first nine months of 2009 rose 3.5% year-on-year to 6,672, said the Cyprus Statistical Service today.

For the month of September, the total number of permits issued was 775 at a value of 233.5 million euros.

Building permits are leading indicator of future activity in the construction sector, and the latest building permit figures indicate some growth. However, elsewhere in the housing industry, the number of foreigners selling their houses on the island in the last two years has risen to over 2,500, according to figures released by the Department of Lands.

According to an article on business and finance website Stockwatch.com.cy, this is due to the global recession, with homeowners from the UK being particularly affected. The number of sellers could have been even higher had it not been for the problem many homeowners have in getting the title deeds to their homes.

Cyprus' property market credibility has taken a knock because many foreign buyers have not received their title deeds. Earlier this year, buyers were told they could get a court order to have the land registry department issue their deeds, and the government is set to go even further with new legislation called a special execution order.

The proposed legislation would allow owners to contact the director of the land registry direct and have him issue them their deeds if they meet all the relevant criteria.

The new legislation would make the buyer the legal owner of the property once the deposit is paid and the sales contract is signed.