The Niue Government says a housing building boom is a positive sign its investment in tourism is paying off.
It said an increase in the number of visitors and expats returning to Niue had boosted the need for houses and facilities.
The secretary of government, Richard Hipa, said the population of Niue was about 1600 but building projects took into account its growing visitor numbers.
He said people were attracted to the improved infrastructure and increased opportunities for employment.
"Largely we are promoting the private sector and there are opportunities now in the private sector with tourism related opportunities, So this has been a long term plan and we are starting to see the tangible results, very good results on Niue"
Mr Hipa said he expected visitor numbers to exceed 10,000 this year.
The Niue High Commissioner to New Zealand O'Love Jacobsen said the increase in the number of expats returning to Niue will help its economy.
She said it is also important to attract some of the 24,000 Niueans living in New Zealand back to the island.
"The drawcard to bringing our people back home, they need to have somewhere to live, they need to have something to do, they need to earn some money and if this is the way that it's heading I think it's a wonderful thing that's happening," she said.
Broken boat delays building supplies
But the building boom has been hindered by delayed supplies with many building projects stalled for weeks.
Niue MP, Terry Coe, said he had noticed about ten new houses being built throughout the island which has a population of around 1600.
He said a broken cargo boat delayed the delivery of materials and held up construction for nearly a month.
"People who are coming up to build houses need to do the building and get back to New Zealand to get back to their jobs, not coming here and then having to go back and come back again when the materials arrive," said Mr Coe.
Terry Coe said the building boom was good for Niue and the hold up with the delivery was unfortunate.