In the first eight months of 2025, Cyprus witnessed a subtle shift in its construction landscape. According to the latest data from the Cyprus Statistical Service, although there was a slight reduction in the number of building permits issued compared to the same period in 2024, the overall approved building area and value continued to grow impressively.
A total of 647 building permits were granted in August 2025, contributing to a cumulative figure of 4,842 permits from January through August — a 4.3% decrease from the 5,062 permits recorded in the same timeframe last year. However, this decline in permit quantity contrasts sharply with the scale of developments approved, with an expected output of 9,275 new residential units, marking a notable 14.6% year-over-year rise. This suggests a pronounced trend toward larger-scale residential projects.
The total construction area sanctioned surged by 16.1% year-on-year to approximately 1,998,548 square meters. Financially, the value of these permits rose by 12.3% to reach €2.44 billion, signaling strong investor confidence despite the lower permit count.
Breaking down by building type, residential zones experienced a 19.6% increase in area, with non-residential buildings growing modestly by 2.6%. Civil engineering projects showed remarkable expansion with a 46.8% jump in area, although their overall permit value fell by 30.5%. Residential permits also led in financial terms, accounting for €1.85 billion (+16.4%), while non-residential values rose 14.9% to €469.2 million.
The rise in residential construction is evident across almost all categories. Detached houses surged by 24.5%, totalling 2,325 units approved, with semi-detached homes seeing a 16.4% uplift. Apartments remained strong, recording an 18.6% increase. On the contrary, mixed-use apartment buildings encountered a steep 62.5% decline, with just 195 new units approved.
Construction growth is not uniform across Cyprus. Data analyzed by StockWatch Cyprus highlights that Limassol experienced the most significant jump in construction area with a 40.1% increase, reaching 712,600 sqm. Nicosia followed with a 25.3% rise to 692,900 sqm. Conversely, Paphos (-16.3%), Famagusta (-16.6%), and Larnaca (-3.9%) faced contractions.
Comparing to pre-pandemic 2019 figures, the island’s approved building area has grown by nearly 30%. Nicosia’s growth of 68.2% over five years is particularly striking, while Paphos remains the outlier with a 6.4% decline.
A notable administrative change since July 2024 is the transfer of building permit authority to District Local Government Organisations (DLGOs). The new Ippodamos digital platform now processes all applications. While this move aims to modernize and streamline approvals, ongoing technical and organizational adjustments continue to impact permit data flow and interpretation.
Whether you’re looking for houses for sale in Cyprus or scouting for the latest affordable apartments, understanding these evolving trends is key to making informed property decisions in Cyprus’s dynamic real estate market.
Stay tuned with INDEX.cy for the most transparent and data-driven insights on Cyprus real estate!
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