Construction Activity in Cyprus Drops by 60%

Published: 16/10/2025

Decline in Construction Activity Volumes

Construction activity across Cyprus declined markedly in June 2025 and throughout the first half of the year.

According to data released on October 15 by the Statistical Service of Cyprus (Cystat), the volume of authorized building permits dropped by nearly 60% compared to June 2024—representing the sharpest contraction recorded in the past five years.

Core development indicators also decreased: total project value and aggregate gross floor area.

Key Statistical Indicators

In June 2025, 635 building permits were issued, down from 1,528 permits twelve months earlier (–58.4%).
Aggregate project value reached €275.1 million across a total gross area of 236,664 m², accounting for the planned construction of 1,132 residential units.
From January through June 2025, a total of 3,399 permits were sanctioned, reflecting a 28.9% decline compared to the corresponding period in 2024.

Contraction Across All Development Sectors

Permits for residential buildings contracted by 19.8%, non-residential schemes by 56.4%, and civil engineering projects by 31.9%.
Land division permits fell by 23.9%, while road construction approvals plummeted by 70.4%.
In monetary terms, the valuation of residential construction decreased by 10.9%, non-residential developments dropped by 20.4%, and civil infrastructure investments fell by 40.9%.

Residential Sector: Detached Homes Stable Amid Multi-Family Slowdown

Out of the 1,132 new residential units, 320 were detached single-family houses (+0.2%), whereas duplexes and multi-family apartment buildings contracted by 7.4% and 12.5% respectively.
Developers are adopting a more conservative approach toward high-density developments, particularly in micro-locations where land acquisitions and construction materials have increased by 15–20%.

Geographical Distribution

The sole district recording positive expansion was Limassol (+13.7%), driven by sustained buyer appetite for prime coastal and residential developments.

The steepest contraction occurred in Larnaca (–36.2%), followed by Paphos (–32.7%), Famagusta (–21.7%), and Nicosia (–11.8%).

Local Government and Planning Reform

Effective July 1, 2024, building permit authority was transferred to the newly established District Local Government Organizations (EOA) alongside the digital Hippodamos platform.
Despite initial transitional software bottlenecks, the administrative reform is engineered to improve procedural transparency and accelerate development application approvals.

Industry analysts project a phased recovery in construction output and permitting velocity across the second half of 2026.