Cyprus Sees Sharp Decline in Building Permits in June 2025

The construction sector in Cyprus witnessed a noticeable slowdown in June 2025, reflecting a broader trend seen throughout the first half of the year. Latest figures released by the Statistical Service highlight a steep drop in the number of building permits issued, signaling a cooling period for the industry.

June 2025: Building Permits Drop Nearly 60%

In June alone, authorities issued 635 building permits, marking a significant 58.4% decrease compared to 1,528 permits in June 2024. The total value of projects approved in the same month amounted to €275.1 million, covering an aggregate area of 236,664 square meters. These permits accounted for the construction of 1,132 residential units across the island.

First Half of 2025 Reveals Almost 30% Decline in Permits

Between January and June 2025, a total of 3,399 building permits were granted, reflecting a 28.9% decline from the 4,782 permits issued in the same period last year. Despite this, the total project value stood at €1.73 billion, down 15.2%, while permitted building area decreased by 12.4% to 1,426,297 square meters. The number of residential units approved also fell by 13.1%, from 7,616 in 2024 to 6,616 this year.

Detailed Breakdown by Project Types

The decline was broad-based. Permits for residential buildings dipped by 19.8%, from 3,171 to 2,543, while non-residential building permits plummeted 56.4%. Civil engineering projects were down 31.9%, land division permits decreased by 23.9%, and road construction permits experienced the sharpest fall at 70.4%.

Project Value and Area Also Affected

The total authorized area for residential projects shrank by 9.0%, while non-residential areas contracted by 24.3%. Civil engineering projects saw a smaller area reduction of 3.3%. In terms of value, residential permits were worth €1.33 billion (down 10.9%), non-residential fell to €318 million (down 20.4%), and civil engineering projects experienced a severe 40.9% value decrease. Land division and road-related projects dropped 45.6% and 71.8%, respectively.

Residential Units: Detached Houses Hold Steady, Apartments Decline

Of the 1,132 residential units approved in June, detached houses stood firm at 320 units, showing a negligible year-on-year increase (+0.2%). Conversely, semi-detached houses dipped by 7.4%, apartment blocks by 12.5%, and mixed-use buildings encountered a stark 68.5% decline.

Regional Trends: Limassol Bucking the Downward Trend

Regionally, the largest reductions in authorized building area during the first six months of 2025 were seen in Larnaca (-36.2%), Paphos (-32.7%), Famagusta (-21.7%), and Nicosia (-11.8%). Limassol was the standout district, posting a 13.7% increase in total approved building area.

Looking at longer-term changes since 2019, total authorized construction area in Cyprus has grown by 24.4%. Famagusta led with a 107.4% surge, followed by Nicosia (+52.3%) and Limassol (+11.9%). Larnaca also recorded a modest increase (+7.5%), while Paphos saw a slight decline of 1.9%.

Impact of the “Ippodamos” System and Local Government Reform

From July 1, 2024, responsibility for issuing building permits shifted to District Local Government Organisations (DLGOs), centralized through the Ippodamos platform. This reform, intended to streamline approvals and boost efficiency, initially encountered procedural hiccups and delays that have influenced the pace of permit issuance and data collection.

The Statistical Service continues its collaboration with local authorities to enhance data accuracy and maintain transparency in tracking these important indicators.

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While the current downturn signals caution, Cyprus’ construction sector remains poised for future growth backed by positive long-term regional increases and ongoing administrative improvements.