Cyprus's construction sector showed steady growth in the period from January to September 2025. According to new data from the Statistical Service, the number of issued building permits increased by 2,7% compared with the same period last year, confirming continued interest in real estate and infrastructure development.
Overall trend in construction activity
In the first nine months of 2025, 5 635 building permits were issued in the country, compared with 5 485 a year earlier. Financial indicators also rose significantly: the total value of approved projects increased by 18,2%, to 2,76 billion euros. At the same time, the scale of development expanded noticeably—the total area of projects grew by 21,9% and amounted to 2,26 million km2. These data indicate that new projects have become larger-scale and more capital-intensive.
Housing sector at the center of growth
The most active development was recorded in residential construction. The number of permits for the construction of residential buildings reached 4 223, which means an increase of 14,6%. The total area of such projects increased by 26,2%, and their value by 22,3%.
The number of residential units permitted for construction grew by 22,9% and reached 10 820. The largest growth was in apartment buildings (+29,4%) as well as private villas (+28,6%). At the same time, the segment of mixed-use apartment buildings showed a sharp decline of 60,3%. Experts link this to a change in the structure of demand and a revision of developers' investment strategies.
Decline in non-residential construction and infrastructure
Unlike the housing sector, activity in the non-residential buildings segment is declining. The number of permits here fell by 36,5%, despite a slight increase in total area of 4,2% and a rise in project value of 16,2%. This suggests that fewer projects are being implemented, but they are larger and more expensive.
A negative trend is also noted in road construction. The number of permits for road construction decreased by 50,9%, and their total value fell by 57,9%, reflecting the caution of the state and investors in infrastructure spending amid general economic uncertainty in the region.
September 2025: the current picture
In September 2025, 793 building permits were issued in Cyprus. The total value of these projects amounted to 319,5 million euros, and the area to 257,3 thousand m2. These licenses provide for the construction of 1 545 residential units, confirming sustained demand for new housing.
Regional dynamics: Nicosia and Limassol lead
At the all-Cyprus level, the total area of approved projects reached 2 255,8 thousand m2, which is 21,9% more than in 2024 and 19,3% higher than the 2019 figures. The highest growth in the period from January to September 2025 was recorded in Nicosia, where the volume of area increased by 35,7% and reached 779,9 thousand m2. Limassol follows with an increase of 31,7% to 775,2 thousand m2, and Larnaca showed an increase of 12,6% to 391,7 thousand m2.
A decline in activity was recorded in the free areas of Famagusta, where the area decreased by 11,8%, as well as in Paphos (-7,1%). When compared with 2019, Limassol remains the only region with a drop in the area indicator by 11,6%, while Paphos shows an almost neutral trend with a slight decrease of 0,3%.
New permit issuance system
Let us recall that from 1 July 2024, the authority to issue building permits was transferred to the new District Local Government Organizations. All procedures now go through the integrated electronic system “Ippodamos”.
Although at the initial stage of implementation the system repeatedly recorded technical malfunctions, it has gradually begun to operate more steadily. It is expected that further digitalization will speed up the licensing process, increase transparency, and have a positive effect on the investment attractiveness of Cyprus's construction sector, especially given the continuing interest from foreign buyers and developers.