Cyprus Sees Significant Construction Growth

Cyprus is currently experiencing a substantial construction boom. According to data from the Cyprus Statistical Service released on Thursday, September 20, a record-breaking 1,528 building permits were issued by the island’s municipalities and district administrations in June 2024 alone.

These permits represent a total value of €781.6 million and cover a total area of 594.9 thousand square meters. The permits account for the construction of 2,772 new residential units, indicating robust activity in the housing sector.

The surge in building permits issued in June 2024 is largely attributed to a concerted effort by authorities to clear a backlog of pending applications. This rush to process permits came ahead of the transfer of responsibility to the newly formed district-level ΕΟΑ (Επαρχιακών Οργανισμών Αυτοδιοίκησης) organisations, which took effect on July 1, 2024.

From January to June 2024, a total of 4,782 building permits were issued, reflecting a 32% increase compared to the same period in 2023, when 3,608 permits were granted. The total value of these permits surged by 44.4%, while the total floor area grew by 46.5%. Similarly, the number of residential units being constructed rose by 44.4%.

On a city-by-city basis, between January and June 2024, all major cities in Cyprus saw growth in construction activity. Nicosia recorded a 14.3% increase in project area, while the free areas of Famagusta experienced an incredible 324% growth. Limassol saw a 32.7% rise, Larnaca had a 107.5% increase, and Paphos registered 65.9% growth.

Building permits are considered a leading indicator of future activity in the construction sector. Despite this current growth, concerns remain that inflation and ongoing supply chain disruptions could lead to rising costs for developers, potentially impacting future construction volumes.

Source: Stockwatch, dom.com.cy

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