Construction Activity in Cyprus Drops by 60%

Construction slowdown

Construction activity in Cyprus has significantly declined in both June 2025 and the first half of the year.
According to data published by the Cyprus Statistical Service (Cystat) on October 15, the number of issued building permits fell by almost 60% compared to June 2024 - the sharpest drop in the past five years.
Both total project value and overall area decreased accordingly.

Key figures

In June 2025, 635 permits were issued compared to 1,528 a year earlier (–58.4%).
The total project value reached €275.1 million, covering 236,664 m², with 1,132 housing units planned for construction.
From January to June 2025, 3,399 permits were issued - 28.9% fewer than during the same period in 2024.

Decline across all categories

Residential building permits dropped by 19.8%, non-residential by 56.4%, and engineering projects by 31.9%.
Land division permits fell by 23.9%, while road construction permits decreased by 70.4%.
In monetary terms, the value of residential construction fell by 10.9%, non-residential by 20.4%, and infrastructure projects by 40.9%.

Residential sector: stable houses, fewer apartment projects

Out of 1,132 new housing units, 320 were single-family homes (+0.2% year-on-year).
However, the number of duplexes and apartment buildings declined by 7.4% and 12.5%, respectively.
Developers are showing more caution with large-scale projects, particularly in cities where land and material costs have risen by 15–20% since 2023.

Regional overview

Limassol was the only region to record growth (+13.7%), driven by strong demand for coastal properties and investment projects.
The steepest declines occurred in Larnaca (–36.2%), followed by Paphos (–32.7%), Famagusta (–21.7%), and Nicosia (–11.8%).

Municipal reform and digitalization

Since July 1, 2024, building permit responsibilities have been transferred to the District Local Authorities (EOA) and integrated into the new Hippodamos digital system.
Although initial technical delays affected reporting, the reform aims to improve efficiency and transparency.
Analysts expect gradual market recovery and renewed growth in construction activity by mid-2026.