According to new figures released by the Statistical Service of Cyprus, the number of building permits issued during the first quarter of 2026 increased by 44.1% compared to the same period last year. The sharp rise reflects strong demand for both residential and commercial property, as well as continued investor confidence in the Cypriot real estate market.
Between January and March 2026, a total of 2,276 building permits were issued, compared with 1,580 during the first three months of 2025.
Construction Activity and Investment Continue to Rise
The increase in building permits was accompanied by strong growth across key construction indicators. The total value of approved projects rose by 41.6%, while the combined floor area of future developments increased by 40.2%. Residential construction showed particularly impressive growth. The number of new housing units included in the approved permits surged by 58.4%, with permission granted for the construction of 5,403 residential units during the first quarter.
Most of these consist of apartment developments, accounting for 3,823 units. In addition, permits were issued for 1,008 detached houses, 334 semi-detached homes, and 234 mixed-type residential developments combining different housing formats. Experts note that this distribution reflects continued demand for both apartments in new residential complexes and private homes, particularly in Limassol, Paphos, Larnaca, and the suburban areas of Nicosia.
Infrastructure Projects Are Also Accelerating
Infrastructure development also recorded significant growth. Road construction permits posted the strongest increase, soaring by 307.1%. While only 14 such permits were issued during the same period last year, the number reached 57 in the first quarter of 2026. In March alone, the authorities approved 27 road construction projects.
The development of new residential areas is also gathering pace. The number of land subdivision permits increased by 67.8%, rising from 118 to 198, indicating that additional land is being prepared for future development. Meanwhile, permits for residential buildings increased by 44.4%, climbing from 1,161 to 1,677.
March Figures Confirm Strong Market Demand
According to the Statistical Service, 776 building permits were issued across Cyprus in March 2026 alone. The total value of the approved projects reached €433.1 million, while their combined floor area totalled 353,900 square metres. These developments include plans for the construction of 1,940 new residential units, highlighting both the sustained activity of developers and the continued strength of demand in the property market.
Analysts believe that the rising number of building permits is one of the key indicators of the continued expansion of Cyprus' real estate market. Strong investment activity is being supported by robust domestic demand, continued interest from foreign buyers, ongoing infrastructure development, and the implementation of major residential projects across the island. The construction sector is expected to remain one of the main drivers of the Cypriot economy in the coming months, while the growing supply of new housing should gradually help increase availability in the property market.