North Cyprus Inform

No sign of building boom returning, but construction is picking up

The TRNC construction industry is slowly getting back on its feet after the Orams case judgement, but there is no sign of a return to the building boom, said the head of the Cyprus Turkish Construction Contractors' Union, Cafer Gurcafer.

Nor was there any sign, he said, of major rise in house prices on the back of last month's favourable ruling in the London High Court.

Mr Gurcafer said there were about 350 construction companies involved in house-building in the TRNC, adding: “Although things have started to move following a slow-down in work prior to the Orams case, it will take time for some companies to get back to the same level of output as before.”

“Home sales are on the increase. But before the Orams case the cost of Turkish title land was increasing. Now those prices have gone down a little.”

“Prices of houses do not seem to be increasing much, either. Prices will only increase once demand for building increases.”

He added: “We must use this period as best as we can to strengthen our sector for the future.”

Head of the TRNC's Estate Agents Association Hasan Sungur said a greater increase in construction could be expected over the next few months as confidence in property-ownership increased following the Orams judgement.

“Building output is now at the same level as it was back in 2003,” he said.

“New laws due to come into force soon should bring more discipline to the construction sector, particularly concerning employment, health, safety and the environment. Land prices should rise and building activity increase, leading to greater competition in the sector.”