A total of 2,764 building permits were issued in Cyprus in the first five months of 2025. This was 15.1%, or 3,254, fewer than in the same period in 2024. Nevertheless, the decline in applications did not impact investment activity, with the total value of projects rising by 15.5% to €1.46 billion and the total area of constructed facilities growing by 15.2% to 1,189,633 m².
Notable growth was recorded in residential construction, with the number of new units increasing from 4,844 to 5,484 (+13.2%). The cost of such facilities amounted to €1.1 billion (an increase of 15.9%). Investment volume in non-residential buildings also increased, reaching €276 million (+17%), while civil construction showed even more impressive growth at 37.8%. Conversely, land development projects fell by 41.6% and road construction plummeted by 66.6%.
In May, there were fewer permits, but more housing
The trend of declining permits continued in May. A total of 607 licences were issued, compared to 709 a year earlier (-14.4%). Nevertheless, key performance indicators showed growth over the month: the total area of projects was 261,637 m², their total cost was €315 million, and the number of new residential units reached 1,163.
At the same time, the distribution by category was mixed. Permits for residential buildings decreased by 5.5% (from 2,163 to 2,044), while non-residential projects collapsed by 42.3% (from 534 to 308). Civil construction decreased by 21.4%, applications for land division fell by 10.6%, and road construction saw a record loss of 69.8%.
Shift towards residential construction
Despite the overall decline in the number of permits, the area of residential properties increased by 16.8% to reach 947,511 m². Non-residential buildings grew by 9%, while civil projects increased by almost 48%, reaching 3,784 m².
In May, construction approval was granted for 1,163 residential units, including 366 detached houses (+15.1%), 89 duplexes (+6.8%), and 708 apartments (+16.9%). At the same time, no mixed-use residential complexes were approved. Overall, the number of approvals in the first five months of 2025 decreased by 31.6%.
Reform of the permitting process and digitisation
On 1 July 2024, responsibility for issuing building permits was transferred to district self-government organisations. Now, all applications go through the unified digital system, Ippodamos, where even old paper files are gradually being transferred.
The transition period revealed a number of technical and organisational difficulties, including delays in processing applications and inaccuracies in statistics. However, the Cyprus Statistical Service, in conjunction with the relevant ministries, is actively working to resolve these issues. It is expected that, in the coming months, the system will be fully operational, ensuring more transparent and faster processing of applications — a development that will be particularly important for investors.
What will this mean for the Cyprus real estate market?
The decline in the number of permits reflects changes in the bureaucratic system and stricter procedures, while the increase in project costs confirms the high level of interest in Cypriot real estate, particularly in the residential sector. Experts predict that, in the coming years, demand will focus on new residential complexes in Limassol, Nicosia and Larnaca, where continued high interest exists from both local buyers and foreign investors.