The issue of issuing building permits in Cyprus remains acute and largely unresolved, negatively affecting the entire real estate sector. Industry representatives report that despite some improvements, the work of the new Regional Self-Governance Organizations (EOA)—which are now responsible for construction licensing—is still struggling. This creates substantial chaos in investors’ plans and slows the country's economic development.
What Changed After the 2024 Reform
Since July 1, 2024, the authority to issue building permits was transferred from municipalities and district administrations to the new EOAs. All processes were moved to the digital platform Ippodamos, which was meant to speed up procedures and make them more transparent. However, the transition proved extremely challenging. Instead of reducing bureaucracy, a series of new complications emerged, further increasing delays.
Problems arose due to a lack of staff in the EOAs, a large backlog of cases inherited from previous authorities, and the fact that the reform coincided with a period of strong growth in the construction sector. Additionally, new regions were added to the EOAs’ responsibility, which increased their workload even more.
Impact on Investments and Developers’ Plans
Due to systemic delays, many construction projects have been left in limbo. Some major developments have been waiting for urban planning approval for more than two years, and even after receiving it, they still cannot begin work without a building permit. Another difficulty has emerged: delays in issuing temporary permits for water connection, which also stall project completion.
The situation has affected the confidence of foreign investors who view Cyprus as a regional business hub. Developers are forced to revise their timelines, while families and companies must abandon plans to move into new buildings because the original construction schedules have become unattainable.
Seeking Solutions and the Position of EOAs
A recent meeting between the leadership of the Cyprus Federation of Building Contractors and the heads of the EOAs showed that the new structure is determined to improve the situation. EOA representatives expressed readiness to accelerate processes, strengthen staffing, and pursue greater autonomy to manage resources efficiently. They emphasize that improving licensing times is a strategic priority, as it directly affects market dynamics and the overall investment attractiveness of Cyprus.
Despite serious problems, the EOAs note that the current rate of processing applications already exceeds the number of new submissions. This may indicate gradual normalization, although the industry continues to wait for more tangible results.
Current Outlook
In 2025, the Cypriot government plans to expand the digital tools of the Ippodamos platform and introduce additional automated document-checking services. Experts expect that modernization will significantly shorten permit processing times. However, the real estate market remains in a state of uncertainty until the EOAs stabilize their operations and manage the accumulated backlog.
The licensing situation has become one of the key factors influencing the pace of construction and the investment climate of the island. Solving this issue will determine how the Cypriot real estate market develops in the coming years.