The Cyprus construction sector experienced a sharp downturn in activity in June 2025, as well as across the first half of the year, with the number of building permits authorised falling significantly, according to data released by the Statistical Service.
Compared with June 2024, the number of building permits issued dropped by nearly 60%, while key indicators such as total project value and area also recorded significant declines.
Building permits collapsed in June
In June 2025, a total of 635 building permits were issued, compared with 1,528 in June of the previous year: a fall of 58.4%.
The total value of these permits reached €275.1 million, while the overall area amounted to 236,664 square metres.
These permits provided for the construction of 1,132 residential units.
Six-month decline in building permits approaching 30%
Between January and June 2025, 3,399 building permits were issued, a 28.9% decline compared with 4,782 in the same period of 2024.
The total value of projects reached €1.73 billion, down 15.2%, while their combined area reached 1,426,297 square metres, a 12.4% drop.
The number of permits approved for residential units also fell by 13.1%, from 7,616 in the first half of 2024 to 6,616 in 2025.
Breakdown by project category
Permits authorised for residential buildings fell 19.8%, from 3,171 to 2,543. Non-residential building permits dropped 56.4%, while civil engineering projects declined 31.9%. Permits for land divisions fell 23.9%, and road construction permits plummeted 70.4%.
Drop in building permits project value & area
The total area of permits authorised for residential buildings decreased 9.0%, and non-residential areas dropped 24.3%, while civil engineering projects saw a marginal decline of 3.3% in area.
In terms of value, residential buildings amounted to €1.33 billion (down 10.9%), while non-residential buildings totalled €318 million (down 20.4%).
Civil engineering projects saw a sharp 40.9% fall in value, with land divisions and road works down 45.6% and 71.8%, respectively.
Residential units: stability in houses, decline in apartments
Of the 1,132 residential units for which building permits were issued in June, 320 were for detached houses, a figure that remained almost unchanged year-on-year (+0.2%).
In contrast, semi-detached houses dropped 7.4%, residential apartment blocks 12.5%, and mixed-use buildings an alarming 68.5%.
Regional breakdown: Limassol the only gainer
From January to June 2025, the largest decline in total authorised building area was recorded in Larnaca (-36.2%), followed by Paphos (-32.7%), Famagusta (-21.7%), and Nicosia (-11.8%).
Limassol was the only district to record growth, with a 13.7% increase in area.
Compared with 2019, the total authorised area across Cyprus has actually risen 24.4%. The strongest positive change was in Famagusta (+107.4%), followed by Nicosia (+52.3%) and Limassol (+11.9%). Larnaca saw a modest +7.5% increase, while Paphos showed a slight -1.9% decline.
The role of “Ippodamos” and local government reform
Since 1 July 2024, the responsibility for issuing building permits has been transferred to the District Local Government Organisations (DLGOs), with all applications processed through the “Ippodamos” integrated information system.
Although this reform aimed to streamline management and improve efficiency, the initial stages were marked by teething problems and procedural delays, affecting both permit issuance and the collection of statistical data.
The Statistical Service continues to work closely with the DLGOs and the relevant ministries to ensure smooth data flow and reliable production of statistics.
