The indices concerning the construction industry in Cyprus dropped to their lowest levels during the third quarter of 2011, according to the Construction Industry Index of the Federation of the Building Contractors Associations of Cyprus (OSEOK).

According to OSEOK, this applies for all districts, with Larnaca and Famagusta on the decline and Nicosia worsening significantly. OSEOK notes that Limassol has not reached the very low levels of other districts.

OSEOK notes that building contractors are facing problems due to low demand, competition with other Cypriot building contractors, the financial crisis, and liquidity and lending problems. Regarding unemployment in the construction sector, OSEOK notes that it worsened during the third quarter of 2011 and that some positive messages are emerging from the indices concerning demand.

The Home Purchase/Construction Index was 4.6% during the past 12 months, which is not the worst ever, while the Renovation Index reached 9.6% and compares favourably with good periods