Cyprus’ construction sector recorded a robust performance in 2025, underpinned by strong demand for residential development and significant growth in the number of dwelling units approved.
According to the latest data released by the Statistical Service, a total of 819 building permits were authorised in December 2025 alone. These permits correspond to a total value of €415.4 million and a combined area of 328,800 square metres, providing for the construction of 1,770 residential units.
For the full year, 8,159 building permits were issued between January and December 2025, compared with 6,827 permits in 2024, representing an annual increase of 19.5%.
Double-digit growth in construction value & floor area
Construction momentum was further reflected in the value and scale of approved projects. The total value of permits rose by 37.8%, while the total authorised floor area expanded by 41.0% year-on-year.
Residential construction continues to dominate development activity, with authorised residential floor area increasing by 45.4% in 2025 compared with the previous year.
Meanwhile, the value of residential building permits climbed 43.7%, highlighting sustained investment appetite in the housing market.
Apartment construction drives housing supply
The number of approved dwelling units rose significantly in 2025, increasing by 42.7% compared with 2024.
Apartment buildings accounted for the largest share of new supply, with approvals for residential apartment blocks rising 51.6% to 10,791 units. Approvals for single houses increased 39.8%, while buildings containing two housing units rose 48.8%.
By contrast, mixed residential and commercial apartment blocks recorded a decline of 58.3%, suggesting developers are prioritising purely residential schemes amid continued housing demand.
Mixed performance across non-residential segments
While residential construction surged, non-residential building permits declined 20.0% in number, despite recording a 19.8% increase in authorised floor area and a 29.3% rise in value.
Civil engineering projects increased 22.6% in number, although their overall value decreased slightly by 3.9%. Road construction activity recorded a decline both in permit numbers (-21.9%) and value (-17.0%).
Planning reform and digitalisation reshape permit process
The Statistical Service notes that, from 1 July 2024, responsibility for issuing building permits transferred from municipalities and district administration offices to newly established District Local Government Organisations (DLGOs).
Permit applications are now processed through the integrated digital licensing platform “Ippodamos“, a reform designed to modernise and streamline planning procedures. The new system is expected to improve efficiency, transparency and consistency in the permitting process.
Outlook for the Cyprus property market
The sharp increase in residential approvals signals continued confidence in Cyprus’ property sector, supported by demographic demand, investment inflows and structural reforms to planning administration.
With housing supply expanding at pace and the licensing framework undergoing modernisation, the construction sector appears well positioned to sustain growth momentum into 2026, although performance across non-residential segments remains uneven.
However, as we reported last month, the Property Developers Association has warned that authorising building permits is taking longer than the time needed to construct a project.
