In the first quarter of 2025, Cyprus's construction sector exhibited intriguing dynamics. Despite a general decline in building permit issuance, the size and value of projects increased significantly.
According to the latest report by the Statistical Service, which was published on Friday, July 11, 1,580 licenses were issued in Cyprus from January to March of 2025. This figure represents a 15.8% decrease compared to the same period in 2024, when 1,876 permits were issued. However, the total area of planned developments increased by 15.6% to 820,400 square meters (compared to 709,700 square meters a year earlier).
The total cost of these projects increased by 21.7% to €961.3 million (compared to €789.8 million in the first quarter of 2024). These permits are for the construction of 2 427 residential units, 16.7% more than in the same period last year.
Geography of Construction
Statistics by region revealed varying trends in the volume of space approved for construction during the first quarter of 2025. The most significant increases were recorded in Limassol (up 97.3% to 336,600 m²) and the free areas of Famagusta (up 67.8% to 48,200 m²).
All other regions showed negative dynamics.
- In Larnaca, the volume of space approved for construction decreased by 41.4% to 72,000 m²;
- In Nicosia, it fell by 14.2% to 214,300 m².
- In Paphos, it fell by 3.1% to 52,900 m².
March figures
In March 2025, 572 building permits were issued in Cyprus, a 1.9% decrease from March 2024 (583 permits). The total area of the properties was 296,900 m², and the total value was €361.5 million. These permits are for the construction of 1,480 residential units.
Experts attribute the decline in construction market activity to administrative changes. Since July 2024, the authority to issue permits has transferred from municipalities to new regional self-government organizations (EOAs). The new information platform, "Ippodamos," is used for submitting and processing applications and has temporarily slowed down the processing of documentation.