The landscape of Cypriot construction is undergoing a significant transformation. While the total number of building permits issued between January and August 2025 has decreased, the scale, value, and intended density of these projects have surged. According to the latest data from the Cyprus Statistical Service (Cystat), this trend indicates a market pivot toward larger, high-value residential and infrastructure developments.
Volume vs. Value: A Comparative Breakdown
During the first eight months of 2025, authorities issued 4,842 permits, representing a 4.3% decline compared to the same period in 2024. However, all other key metrics show double-digit growth:
| Metric (Jan–Aug 2025) | Total Figure | Annual Change (%) |
| Total Area | 1,998,548 sqm | +16.1% |
| Total Project Value | €2.44 Billion | +12.3% |
| Residential Units | 9,275 Units | +14.6% |
This data confirms that while fewer individual applications are being approved, the projects that do move forward are significantly more expansive. Residential project value alone hit €1.85 billion, a 16.4% jump from last year.
Residential Sector: The Rise of Detached Homes and Apartments
The growth in planned housing is spread across almost all categories, with a notable emphasis on single-family homes and high-density living:
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Detached Houses: Recorded the highest growth in units at +24.5% (2,325 units).
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Apartment Blocks: Continued strong momentum with an 18.6% increase in unit approvals.
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Semi-Detached Homes: Rose by 16.4%.
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Mixed-Use Decline: In contrast, residential/commercial apartment blocks saw a sharp 62.5% drop, suggesting a cooling interest in combined retail-residential spaces.
Regional Performance: Limassol and Nicosia Surge
Construction activity remains heavily concentrated in the island’s major urban centers, with Limassol leading the way in terms of new construction area:
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Limassol: Total construction area soared by 40.1% to 712,600 sqm.
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Nicosia: Followed with a 25.3% increase (692,900 sqm). The capital also holds the strongest 5-year growth record, up 68.2% since 2019.
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Decreases: Paphos (-16.3%), Famagusta (-16.6%), and Larnaca (-3.9%) all saw a contraction in the total area of new permits during this eight-month window.
Digital Reform: The “Ippodamos” Transition
The recent data is set against a backdrop of major administrative change. Since July 2024, the responsibility for licensing has moved to District Local Government Organisations (DLGOs). All new applications are now managed through the “Ippodamos” digital system.
Industry analysts suggest that the slight drop in permit numbers may be partially attributed to technical adjustments and organizational learning curves as the new system is fully integrated.
Source: Cyprus Property News