Cyprus’s construction sector is undergoing a shift toward larger, more capital-intensive developments, according to the latest data from the state Statistical Service (Cystat). While the number of building permits issued in the first seven months of 2025 recorded a notable 14.0% decline compared to the same period in 2024, the aggregated financial metrics painted a strong picture of investment.
Investment Volume Rises Despite Fewer Authorizations
The data for the January to July 2025 period revealed that fewer permits are generating significantly higher total value and area:
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Permit Count: A total of 4,195 building permits were issued, down from 4,879 in 2024.
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Total Project Value: The total value of these authorized projects increased by 4.8%.
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Total Project Area: The total area covered by the permits rose by 7.8%.
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Dwelling Units: Crucially, the number of new residential units planned actually recorded an increase of 4.6%, suggesting a shift toward multi-story residential blocks and larger developments.
This trend suggests that construction companies and investors are focusing on fewer, but larger and more valuable projects, thereby maintaining robust investment in the sector.
Administrative Change Impacts Reporting
Cystat also highlighted a significant administrative reform that may be contributing to the statistical fluctuations.
Since July 1, 2024, the responsibility for issuing building permits has been transferred from local municipalities and district offices to the newly founded District Self-Governance Organizations (EOAs). The entire process is now managed through the new integrated electronic system, “Ippodamos.”
This transition, which involved shifting a large volume of applications to a new digital platform, created some technical and procedural delays which have affected the pace of statistical reporting. Analysts expect that the full stabilization of the Ippodamos system by the end of 2025 will provide more illustrative and accurate trends in the coming months.
Source: Cyprus Mail