**Cyprus Building Boom Continues as Permits Exceed €2.1 Billion**
Cyprus is experiencing a significant surge in building activity, as reported by the statistical service (Cystat). In May 2026, the island authorized 735 building permits, marking a 21.1% increase compared to the same month in the previous year. The total value of these permits reached €428.2 million, covering an area of 352,126 square meters and facilitating the construction of 1,847 dwelling units.
The trend of rising building permits is not limited to May. From January to May 2026, a total of 3,650 permits were issued, a notable increase of 32.1% from the 2,764 permits authorized during the same period in 2025. The total value of these permits surged by 43.9%, climbing from €1.46 billion to €2.10 billion. The authorized floor area also expanded significantly, increasing by 43.1% from 1.19 million square meters to 1.70 million square meters.
The residential sector has seen the most substantial growth, with the number of planned homes rising by 63.7% to 8,978 units compared to 5,484 units in the first five months of 2025. In May alone, 530 residential building permits were issued, contributing to a five-month total of 2,684 residential permits, which is a 31.3% increase from 2,044 permits last year.
Non-residential building permits showed a more modest increase of 7.1%, rising from 308 to 330, with 75 permits issued in May. Civil engineering permits experienced a notable increase of 26%, with 213 permits authorized during the five-month period, including 43 in May. Additionally, the division of plots has gained momentum, with 343 permits issued in the first five months of 2026, compared to 211 permits during the same timeframe last year, reflecting a 62.6% increase. May accounted for 73 of these permits.
Road construction permits saw a dramatic increase, rising from 32 to 80, which translates to a 150% growth, with 14 permits issued in May. The area authorized for residential buildings surged by 62.8%, reaching 1.54 million square meters, compared to 947,511 square meters in the previous year. In May, 309,398 square meters were approved for residential construction.
Conversely, the area covered by non-residential permits decreased by 40.2%, dropping from 238,338 square meters to 142,629 square meters, with May contributing 42,067 square meters. Civil engineering projects recorded the highest percentage increase, with their authorized area rising from 3,784 square meters to 17,892 square meters—an increase of 372.8%. May alone accounted for 661 square meters of this growth.
The value of residential developments during the first five months of 2026 was estimated at €1.79 billion, reflecting a 61.6% increase from €1.11 billion in the previous year. The value of residential permits issued in May was €360.4 million. In contrast, the value of non-residential projects fell by 28.8%, from €276 million to €196.5 million, with May permits valued at €52.4 million. Civil engineering project values rose by 39.9% to €85.8 million, including €9.4 million in May.
The value of plot division projects saw a significant increase of 99.2%, rising from €11.7 million to €23.4 million, with May contributing €5.2 million. Road construction values also increased by 66.4% to €4.1 million, with May accounting for €743,000.
In terms of housing types, permits issued during the five months provided for 6,667 homes in residential apartment blocks, a substantial increase of 90.6% from 3,497 units. In May alone, apartment blocks accounted for 1,483 of the 1,847 homes approved. The number of planned residential and commercial apartment blocks rose by 82.1% to 295 units, although only four such units were approved in May. Additionally, the number of single houses increased by 7.3% to 1,469, with 232 approved during May. Homes in buildings containing two housing units rose by 20% to 547, including 128 units authorized in the same month.
The ongoing building boom in Cyprus reflects a robust demand for housing and infrastructure, indicating a positive trend in the construction sector as the island continues to recover and grow economically.