According to recent data from the Cyprus Statistical Service, the construction sector experienced significant growth in 2024. The total value of construction output reached €6.23 billion, which is a 12% increase compared to 2023. Despite global challenges such as inflation and higher construction material costs, this growth indicates that the sector is still recovering and expanding.
Value-added indicators also rose steadily, reaching €1.58 billion in 2024—up 9.4% from the previous year. These figures confirm the resilience of the Cypriot construction market and its vital role in developing the national economy.
Priorities for growth in new construction include housing and infrastructure
Housing construction was the most active sector. In 2024, the value of new construction projects reached nearly €3.6 billion, a 5.9% increase from the previous year. Residential buildings accounted for the lion's share at €2.37 billion, demonstrating 6.2% growth.
Commercial real estate also showed positive dynamics, with growth amounting to 4.5% and reaching a volume of €693 million. There was also a significant increase in infrastructure projects, which rose 6.4% to €526 million. This indicates increased activity in the construction of roads, bridges, engineering networks, and other socially significant facilities in the public and private sectors.
The construction sector boosted employment
Against the backdrop of growing demand and increased work volumes, employment in the sector grew as well. In 2024, the number of people employed in construction increased by 4% to nearly 39,000. This includes both salaried employees and self-employed professionals.
This growth makes the construction sector one of the most important drivers of the Cypriot labor market. Additionally, increased employment contributes to higher tax revenues and greater stability in the social sphere.
The outlook for 2025 is a steady trend towards growth
The positive trend is expected to continue into 2025. Growing interest from local and foreign investors, as well as active development of urban infrastructure—including residential and resort projects—are supporting high demand. The Cypriot authorities continue to stimulate construction through tax and investment initiatives, as well as by simplifying licensing procedures.
Given the favorable macroeconomic environment, Cyprus remains an attractive destination for real estate investment for developers and end buyers alike.