From January to July 2025, Cyprus recorded a significant increase in the total area of projects that received building permits. This figure rose by 7.8% compared to the same period in 2024, while the total value of projects increased by 4.8%. These trends reflect a shift toward larger and more capital-intensive developments, despite a decline in the overall number of permits issued.
The number of permits fell notably over the seven months: 4,195 compared to 4,879 a year earlier — a 14% decrease. However, this drop does not indicate reduced interest in construction. Instead, it highlights a shift toward larger projects and evolving industry priorities.
July 2025 Results: fewer permits but more construction
In July 2025, 796 permits were issued, with a total project value of nearly €455 million. The combined project area reached 359,100 m². These permits will support the construction of more than 1,500 residential units.
Overall, the number of new residential units planned for the first seven months of the year reached 8,128, an increase of 4.6% year-on-year. The market shows a clear trend: fewer permits, but more square meters and significantly higher investment volumes.
Regional dynamics: Limassol leads the way
The largest increase in project area was recorded in Limassol, with a 35% rise compared to last year. Nicosia also showed strong growth at 17%, reflecting heightened construction activity.
Conversely:
- Paphos experienced a 26% decline,
- Larnaca — a 19% drop,
- Free Famagusta areas — a 16% decrease.
These differences reflect the fact that Limassol and Nicosia continue to attract major investments in large residential and commercial developments.
Divergent trends by project category
The data shows uneven development depending on the construction segment:
Residential buildings
- Number of permits: –2%
- Project area: +9.6%
- Project value: +7%
This confirms the market’s focus on larger residential complexes.
Non-residential buildings
- Number of permits: –48%
- Area & value: slight growth
Civil engineering projects
- Number of permits: –21.7%
- Area: +25.8%
Road construction
- Number of permits: –64.8%
- Project value: –67.5%
These declines are tied to budget reallocations and new planning approaches adopted by regional administrations.
Residential market trends
The housing sector continues to expand:
- Detached houses: +14.1% (2,018 units)
- Duplexes: +9%
- Multi-storey residential buildings: +8.1% (5,285 units)
The only category with a dramatic decline is mixed-use multi-unit developments, down 65.4%.
New permit procedures and impact of digitalisation
Since July 1, 2024, building permit issuance has been handled by new Regional Self-Governance Organizations. Applications are now submitted through the electronic platform “Ippodamos”.
The transition created some technical and organisational delays, which also affected the pace of statistical reporting. However, digitalisation is already yielding benefits: processing times are shortening, transparency is improving, and full platform stabilisation is expected by the end of 2025.
Current data shows that Cyprus’s construction sector continues to grow, shifting toward larger and more valuable developments. Analysts expect even more illustrative trends in the coming months, with total investment likely to rise further amid strong demand for both residential and commercial properties.