Decrease in Building Permits Granted in Cyprus by 15.2% During Initial Part of 2025
In a surprising turn of events, the number of building permits in Cyprus between January and April 2025 saw a significant decrease of 15.2%. Despite this decline, the construction sector in Cyprus is far from stagnant.
A Focus on Residential Units
Contrary to the overall trend, the number of residential units in building projects during the same period recorded a 12.1% growth. This increase is attributed to sustained demand from both locals and foreign investors, indicating a continued interest in housing development.
Decline in Other Sectors
However, the story is different for non-residential, infrastructure, and road construction projects. Permits for these sectors saw sharp reductions: roads down 77.5%, non-residential buildings down 41.3%, and infrastructure down 22.8%. This reduction in non-residential and civil projects led to the overall decline in total permits issued.
Larger and More Capital-Intensive Projects
Although fewer permits were issued, the average project value and construction area increased. The project value saw a 15.4% increase, while the construction area grew by 13.3%. This suggests that developers are focusing on fewer but bigger projects, especially residential ones, raising the overall investment despite fewer permits.
New Permit System and Digitalization
Since July 2024, Cyprus reformed construction permitting by shifting authority from municipalities to District Self-Government Organizations and implementing a digital platform (Ippodamos) to streamline applications. This system change may have influenced permit issuance volumes, potentially reducing the number of smaller or simpler permits but improving processing efficiency for larger projects.
April 2025: A Closer Look
In April 2025, the number of residential building permits issued saw only a 4.4% drop compared to the same month in the previous year. The total area of building projects in Cyprus during the same period increased by 13.3%, and the total value saw an increase of 15.4%.
Despite the decrease in the total number of permits issued, the total value of building permits issued in April 2025 was €255.2 million. A total of 577 building permits were issued, down from 669 in April 2024 - a decrease of 13.8%.
Long-Term Trends
Between January and April 2025, 2,157 building permits were issued, a decrease of 15.2% compared to the same period in the previous year. Permits for civil engineering projects decreased by 22.8%, and permits for non-residential buildings decreased by 41.3%.
In summary, the decrease in permit numbers reflects a concentrated shift toward fewer, larger, predominantly residential developments amid declines in other sectors, coupled with procedural changes in permitting. This shift is likely to continue shaping the construction landscape in Cyprus in the coming years.
[1] Cyprus News Agency. (2025, May 15). Construction permits drop, but residential sector thrives. Retrieved from www.cyprus-mail.com/news/business/construction-permits-drop-but-residential-sector-thrives/2025/05/15
[2] Financial Mirror. (2025, May 18). Cyprus construction sector: A closer look at the trends. Retrieved from www.financialmirror.com/2025/05/18/cyprus-construction-sector-a-closer-look-at-the-trends/
- In contrast to the overall decrease in building permits, the residential sector in Cyprus witnessed a growth of 12.1% in the number of residential units during the same period, which demonstrates continued interest from both locals and foreign investors in investing in Cyprus' real estate market, particularly in housing development.
- While the number of residential building permits saw only a 4.4% drop in April 2025 compared to the previous year, the total value of these permits increased significantly by 15.4%, indicating that developers are focusing on larger, more capital-intensive residential projects.
- With the recent reforms in Cyprus' construction permitting system, such as the shift of authority from municipalities to District Self-Government Organizations and the implementation of a digital platform (Ippodamos), there may be a reduction in the issuance of smaller or simpler permits, but increased efficiency for larger projects, contributing to the shift towards fewer, more ambitious real estate developments in the country.
