Filenews 22 May 2022
By Socrates Ioakim - socratis@phileleftheros.com
The ratio of the total number of mobile telephony users to the population of the Republic of Cyprus in the second half of 2021 showed an increase of 2.8% compared to the first half of 2021, reaching 148.7%, according to the latest statistical bulletin of the Office of Electronic Communications and Post Regulation (OCECPR).
Specifically, in just one year the total number of mobile users increased by 25,000. The data show a stabilisation in the overall market shares of the leading mobile phone providers, with the exception of Cablenet, which appears to be on an upward trend. Specifically, Cyta, with minimal losses of 0.7% compared to the first half of 2021, is in first place with a share of 52.3%, leaving EPIC in second place with a share of 34%, compared to 35% held in the first half of last year. An increase of 0.4% compared to the first half of 2021 was recorded by Primetel, which now controls 10.2% of the market, while Cablenet increased its share to 3.5% from 2.3% it controlled on June 30, 2021.
Among contract subscribers, Cyta ranked first in December 2021, with 53.5% compared to 54.3% in June 2021, while Epic placed second, with a market share of 32.5% compared to 33.3% in the first half of 2021. Primetel saw its shares fall by 0.2% to 9.3%, while Cablenet now controls 4.7% of the market, up from 3% in June 2021. Regarding prepaid mobile users, Primetel shows the largest increase in its percentage, while a small drop is recorded in the shares of Cyta and Epic. Specifically, 50% of the users are owned by Cyta, 36.9% by Epic, 12.1% by Primetel and only 1% by Cablenet. Finally, the total volume of data increased by 28% in 2021 compared to 2020. Q4 2021 saw the highest volume of data.
Car sales in Europe are falling
For the tenth consecutive month, sales of new vehicles in Europe have fallen, as the sector remains mired in supply chain crises and persistent shortages, a result of lockdowns in China, which are triggering record inflation. As reported by Bloomberg, registrations fell by 20%, to 830,447 vehicles in April, according to the announcement made Wednesday by the European Automobile Manufacturers Association. It was the biggest drop this year. The column, however, finds it particularly worrying for the industry that in some cases there are delays of more than one year in the delivery of new vehicles, a situation that with the current data is difficult to reverse.
Incentives to buy a bicycle are modified
Amendments to the Incentive Plan for the purchase of a bicycle, so that it is socially targeted, were announced this week by the Minister of Transport, Communications and Works, Yiannis Karousos. What the government will actually try to change is for the new plan to have a social focus, to target vulnerable groups and those who really need to buy a bicycle and use it. The aim, as the column is informed, is to prepare within the next month the necessary changes and amendments to the plan, in cooperation with the Ministry of Finance and the Deputy Ministry of Social Welfare, with the aim of being approved before the end of June to be announced.
Large increase in the prices of building materials
There is no sign of any halt to the increasing price of building materials, which causes a slowdown in construction activity and concern to the competent bodies of the real estate market. According to what the Statistical Service announced on Wednesday, the Index of Prices of Construction Materials for the month of April 2022 stood at 132.69 points (based on 2015=100), recording an increase of 5.60%, compared to the previous month. Compared to the same month last year, the index recorded an increase of 24.54%. By main product category, increases were recorded in metal products (42.35%), wood, insulation, chemical and plastic products (24.77%), electromechanical items (16.39%), mineral products (9.96%) and minerals (8.72%). Finally, in the four months of 2022, the total increase in the prices of building materials is 19.42%. This increase, however, also overturns the development plans of the government, which will necessarily freeze some projects that were in the process of being implemented.
How many new loans banks gave in March
A decrease in the interest rates on deposits and consumer loans and a marginal increase in the interest rate on housing loans can be seen in the data published by the Central Bank of Cyprus for March 2022. Specifically, the interest rate on deposits with a maturity of up to one year from households decreased to 0,05%, compared to 0,07% in the previous month, while the corresponding interest rate for deposits from non-financial corporations decreased to -0,01%, compared to 0,00% in the previous month. As regards loans, the interest rate on consumer loans decreased to 3,06%, compared to 3,19% in the previous month, while the interest rate on loans for house purchase increased to 2,16%, compared to 2,14% in the previous month. In March 2022, total new loans increased to €506.7m, compared to €437.4 February. Specifically, new consumer loans increased to €14.1m, compared to €12.2m. last month, while new loans for house purchase increased to €205.1m, compared to €150.4m in February 2022.
The resilience of the real estate sector in Cyprus
Despite the particularly negative conditions in the global and domestic economy, the real estate sector in Cyprus showed remarkable resilience in the first quarter of 2022, especially compared to the previous year. Nationwide, according to data obtained by the column from LandBank Real Estate Analytics, 2202 transactions were recorded, with a total value of €306 million (excluding restructurings and other non-voluntary transactions). Compared to 2021, transactions appear to have increased by 10.3% in number and 28.6% in value. The largest decrease in the number of transactions was recorded in March, which reached 6%, but in value (in the same month) an increase of 14% was recorded. The first quarter of 2022 followed mainly positive rates on an annual basis. The largest increase, compared to the corresponding month of 2021, was recorded in January, which reached 47% in number and 65% in value. The month of March recorded the highest sales of the quarter, both in number (856) and in value (€126m). The most sales of the quarter were recorded in Nicosia District, where it was 743 in number and €107m. in value. It is followed by the Limassol District with €87m in 614 sales, the District of Larnaca with €48m in 403 sales, the Pafos District with €51m in 345 sales and the Famagusta District with €13m in 97 sales.
Out-of-court proceedings for undeclared work
An extrajudicial amount of €25,000 were issued during the inspection process to combat undeclared work and check compliance with basic labour laws, by the Inspection Service of the Ministry of Labour during the month of April 2022. Specifically, the service carried out inspections in 101 premises, with the inspections carried out concerning the sectors of agriculture, livestock, wholesale market and packaging plants. During the inspections, a total of 14 undeclared employees were identified in two companies. It is worth noting that in the case of identifying an undeclared person, a fine of €500 is issued, multiplied by 7 months, unless the period is shorter or longer. Then the multiplication is reshaped accordingly.
