Construction activity in Cyprus has noticeably slowed down, both in June 2025 and across the first half of the year, according to data released by the Statistical Service (Cystat) on Wednesday, October 15.
Compared to June 2024, the number of building permits issued fell by almost 60%, marking the sharpest decline in the past five years. Key indicators such as total project value and total built area also dropped significantly.
Construction Volume Plummets
In June 2025, a total of 635 building permits were issued in Cyprus, compared to 1,528 a year earlier — a 58.4% decrease. The total value of these projects reached €275.1 million, with a combined area of 236,664 m². These permits cover the construction of 1,132 housing units.
Between January and June 2025, 3,399 permits were issued across Cyprus, down 28.9% from the same period in 2024 (when 4,782 permits were issued).
The total value of all projects in the first half of 2025 amounted to €1.73 billion (–15.2%), while the total area declined by 12.4% to 1,426,297 m². The number of planned housing units also decreased from 7,616 in 2024 to 6,616 in 2025, a 13.1% drop.
Decline Across All Project Categories
Permits for residential buildings fell by 19.8%, from 3,171 to 2,543, while non-residential buildings saw a much sharper decline of 56.4%. Engineering infrastructure projects also dropped by 31.9%.
Permits for land divisions decreased by 23.9%, and for road construction by a staggering 70.4%.
In terms of total area, residential buildings declined by 9%, non-residential projects by 24.3%, and engineering projects by 3.3%.
In monetary terms, the value of residential construction reached €1.33 billion (–10.9%), while non-residential construction fell to €318 million (–20.4%). The value of infrastructure projects dropped by 40.9%, and for land division and road construction, the decrease was 45.6% and 71.8%, respectively.
Housing Market: Stability in Houses, Decline in Apartment Projects
Of the 1,132 housing units approved for construction in June, 320 were single-family houses — a figure almost unchanged from last year (+0.2%).
However, the number of duplexes declined by 7.4%, apartment buildings by 12.5%, and mixed-use complexes by a sharp 68.5%.
Construction experts note that developers are becoming more cautious about launching large-scale projects, especially in cities where land and material costs have risen by an average of 15–20% compared to 2023.
Regional Breakdown: Growth Only in Limassol
Between January and June 2025, the sharpest drop in total permitted building area was recorded in Larnaca (–36.2% year-on-year), followed by Paphos (–32.7%), the Famagusta free areas (–21.7%), and Nicosia (–11.8%).
The only district showing growth was Limassol, where total permitted area increased by 13.7%, driven by strong demand for housing and investment projects in coastal zones.
When compared to 2019, the total building area covered by permits remains 24.4% higher. The biggest increase since then was recorded in the Famagusta free areas (+107.4%), followed by Nicosia (+52.3%), Limassol (+11.9%), and Larnaca (+7.5%). In contrast, Paphos experienced a slight decrease of 1.9%.
Local Government Reform
Since July 1, 2024, the responsibility for issuing building permits has been transferred to the District Local Government Authorities (EOA), and all processes have been digitized through the Hippodamos system.
Although the reform aims to increase efficiency and transparency, the initial phase has been marked by technical issues and delays, affecting both application processing speed and reporting accuracy.
The Statistical Service of Cyprus continues to work with EOA and relevant ministries to ensure the system operates smoothly and statistical data remains reliable.
According to analysts, improved administrative processes and market stabilization could lead to a gradual recovery in construction activity by the second half of 2026.