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20.06.2025
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20 June 2025

Cyprus is issuing fewer building permits, but the cost of projects is rising

On Thursday, June 19, the Statistical Service of Cyprus published a new report on building permits issued in the island nation.

According to the agency, the number of licenses decreased by 20.4% in February 2025, dropping to 562 compared to 706 a year earlier.

The total value of these projects was €296.3 million, and the total area was 237,200 square meters. These permits are for the construction of 1,094 residential units. Experts noted that this trend is directly linked to the transfer of powers to new regional self-government organizations (EOAs). The process of submitting and processing applications is now carried out through the new information platform, "Ippodamos," which has temporarily slowed the processing of documentation.

На Кипре выдают меньше разрешений на строительство, но стоимость проектов растет

In the first two months of 2025, 1,008 permits were issued, 22% fewer than the 1,293 permits issued in January–February 2024.

The total value of these permits increased by 12.1% to €471.4 million, the total area increased by 6.6%, and the number of residential units increased by 10.2%.

These figures suggest a shift toward larger, higher-quality construction projects, despite the overall decline in project numbers.

Regional statistics revealed varying trends in the volume of space approved for construction:

  1. The free areas of Famagusta led the way in terms of annual growth: +94.3%, reaching 34,100 m²;
  2. Limassol ranked first in terms of absolute volume (166,500 m²) and second in terms of growth rate: +57.5%.
  3. Paphos recorded a slight increase of 3.2% to 37,000 m².

A decrease was observed in:

  1. Larnaca experienced the most significant decline, with an area of 45,900 m² and a decrease of –49.5%.
  2. Nicosia experienced a moderate decline of 4.8%, despite its high absolute figure of 143,600 m².

These figures reflect structural changes in the Cypriot construction market, indicating a shift from small-scale projects to larger investment projects despite temporary bureaucratic delays.

Source: stockwatch.com.cy
Photos: pixabay.com, DOM

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