The Cyprus construction industry is facing a notable slowdown in 2025, with June and the first half of the year showing significant decreases in building permit approvals, according to the latest figures from the Statistical Service of Cyprus.
June 2025 saw only 635 building permits issued, a steep decline of 58.4% compared to 1,528 permits in June 2024. This decline wasn’t only reflected in permit numbers but also in the overall value and size of projects. The total project value for June stood at €275.1 million, covering a combined area of 236,664 square metres. These permits accounted for the construction of 1,132 residential units.
From January to June 2025, the total number of building permits was 3,399, marking a 28.9% drop from 4,782 in the same period last year. The value of projects also shrank by 15.2% to €1.73 billion, with the total authorized area declining by 12.4% to 1,426,297 square metres. Residential unit permits fell by 13.1%, from 7,616 units in the first half of 2024 to 6,616 units in 2025.
The total area authorized for residential projects decreased by 9%, and non-residential areas contracted by 24.3%. Civil engineering project areas marginally dipped by 3.3%. In value terms, residential buildings amounted to €1.33 billion (a fall of 10.9%), non-residential projects to €318 million (down 20.4%), and civil engineering projects experienced a steep 40.9% reduction. Land division and roadwork permits declined in value by 45.6% and 71.8%, respectively.
Among the 1,132 residential units permitted in June, detached houses held steady at 320 units (+0.2% year-on-year). In contrast, permits for semi-detached houses dropped 7.4%, residential apartment blocks fell 12.5%, and mixed-use buildings saw a dramatic 68.5% decrease.
Regionally, Larnaca experienced the most substantial area decline (-36.2%), followed by Paphos (-32.7%), Famagusta (-21.7%), and Nicosia (-11.8%). Limassol was the sole district to register growth, with a 13.7% increase in building area. Looking further back to 2019, total authorized building area across Cyprus has expanded by 24.4%, led by Famagusta (+107.4%), Nicosia (+52.3%), and Limassol (+11.9%). Larnaca and Paphos showed more modest changes (+7.5% and -1.9%, respectively).
Since July 1, 2024, the responsibility for issuing building permits shifted to District Local Government Organisations (DLGOs), with all applications processed through the integrated Ippodamos system. This reform was intended to streamline permit management and enhance efficiency. However, initial implementation encountered teething issues and procedural delays, impacting both permit issuance timelines and statistical data reliability.
The Statistical Service is continuing to collaborate closely with the DLGOs and relevant ministries to ensure smoother data collection and consistent reporting moving forward.
This pronounced decline in building permits signals a cautious phase in Cyprus’ real estate and construction sectors. For buyers interested in turning opportunities into assets, this market shift could also mean less competition in certain property segments and regions. Whether you’re looking for affordable apartments or cheap houses and villas for sale in Cyprus, our marketplace offers the most up-to-date listings with transparent data to help guide your decision.
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