Despite a modest decline in the number of building permits granted during the first eight months of 2025, Cyprus continues to see robust growth in both the total construction area and financial value of these permits. The latest data from the Cyprus Statistical Service reveals interesting trends that highlight a nuanced but positive outlook for the real estate market.
In August 2025 alone, 647 building permits were issued, bringing the cumulative total from January to August to 4,842. This represents a 4.3% decrease compared to 5,062 permits in the same period in 2024. However, these permits collectively cover 9,275 residential units, marking a substantial 14.6% increase year-over-year. This indicates a market shift toward fewer but larger developments, emphasizing comprehensive projects with higher density.
The total approved construction area surged by 16.1%, reaching nearly 2 million square meters (1,998,548 sqm). In tandem, the monetary value connected to these permits grew by 12.3%, now valued at €2.44 billion. Residential buildings drove much of this expansion, with approval areas up 19.6%, while non-residential constructions increased modestly by 2.6%. Notably, civil engineering projects experienced a pronounced 46.8% rise in area, signaling infrastructure development momentum.
In terms of investment, the residential sector commands €1.85 billion (+16.4%), with non-residential building permits valued at €469.2 million (+14.9%). Though these figures are promising, some segments such as civil engineering (-30.5%), land subdivisions (-23.6%), and road construction (-61.9%) have seen decreases, reflecting selective market dynamics and possibly shifting government or developer priorities.
Detailed data shows that almost all residential property categories posted growth. Detached houses are on the rise, with approvals climbing by 24.5% to 2,325 units, and semi-detached houses also experienced a healthy 16.4% increase. Apartments gained momentum too, growing by 18.6%. Conversely, mixed-use apartment buildings faced a steep decline of 62.5%, with just 195 units approved, pointing to changing market preferences or regulatory influences.
Construction activity is not evenly spread across Cyprus. According to StockWatch, Limassol’s total construction area surged by a remarkable 40.1%, totaling 712,600 sqm, and Nicosia followed with a 25.3% increase to 692,900 sqm through August 2025. In contrast, Paphos experienced a 16.3% drop, Famagusta declined 16.6%, and Larnaca saw a minor reduction of 3.9%.
Looking at trends since 2019, Cyprus as a whole has witnessed a 29.9% increase in total construction area approved. Nicosia stands out with the highest five-year growth at 68.2%, whereas Paphos remains the only district with reduced activity, falling by 6.4%. For those searching for properties in these booming districts, browse our offerings of Limassol and Nicosia listings on INDEX.cy.
Since July 2024, the responsibility to issue building permits shifted from municipalities and district offices to the District Local Government Organisations (DLGOs). All applications are now processed through the new Ippodamos digital platform. While this streamlines procedures, ongoing technical and organizational adjustments affect data consistency and trends. This context is essential for interpreting recent permit statistics and market signals accurately.
While fewer permits were issued in 2025 compared to last year, Cyprus is witnessing larger and higher-value construction projects, especially in residential developments. The growth in important districts like Limassol and Nicosia signals healthy demand and ongoing urban expansion. Developers and buyers should carefully watch these trends, especially as new digital permit processes get fully embedded.
For accurate updates and property searches tailored to your needs, explore our Cheap Apartments for Sale Cyprus section and find opportunities across the island.
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