Cyprus construction pipeline expands as permits rise

Cyprus’ real estate sector continued to expand sharply in February, with building permits recording strong growth across most categories and pointing to a broader pipeline of residential development. According to a report from the Cyprus Statistical Service (Cystat), a total of 711 building permits were authorised during the month. The total value of these permits reached €379.9 million, while the total covered area amounted to 314,697 square metres. The permits provide for the construction of 1,708 dwelling units, underlining the continued strength of residential activity across the island. During the first two months of the year, 1,500 building permits were issued, up from 1,008 in the corresponding period of 2025. That amounts to a 48.8 per cent year-on-year increase, marking a significant acceleration in construction-related approvals. The total value of permits also rose by 56.5 per cent, while the total area increased by 54.9 per cent. At the same time, the number of dwelling units climbed by 79.2 per cent, reaching 3,463, compared with 1,932 in January-February 2025. In February alone, 526 permits were issued for residential buildings, bringing the total for the first two months of the year to 1,109. This was up from 723 in the same period last year, an increase of 53.4 per cent. Non-residential buildings recorded a more moderate rise, with 62 permits issued in February and 137 during January-February, compared with 127 a year earlier. The category grew by 7.9 per cent, far below the pace recorded in residential construction. Civil engineering projects also increased, with 43 permits issued in February and 97 in the first two months of the year, against 69 in the same period of 2025. This translated into a rise of 40.6 per cent. Meanwhile, permits for the division of plots reached 127 in January-February, compared with 82 a year earlier, up 54.9 per cent. Road construction recorded the sharpest percentage increase, with 30 permits issued in the first two months of the year, compared with just seven in the same period of 2025. The increase stood at 328.6 per cent, although from a low base. In terms of covered area, residential buildings accounted for the largest share, with 276,594 square metres authorised in February. For January-February, the total area for residential buildings reached 578,609 square metres, up from 321,930 square metres in the same period last year. That was an increase of 79.7 per cent, again showing the weight of housing projects in the market. By contrast, the area covered by non-residential buildings fell by 36.6 per cent, dropping to 66,108 square metres in January-February from 104,274 square metres a year earlier. In February alone, non-residential buildings accounted for 36,300 square metres. Civil engineering projects, however, saw a sharp increase in area, rising to 16,666 square metres in the first two months of the year from just 901 square metres in January-February 2025. The rise came to 1,749.7 per cent, again from a particularly low comparison base. Overall, the total authorised area reached 661,383 square metres in January-February, compared with 427,105 square metres in the same period last year. The value of residential building permits also rose strongly. In February, residential buildings accounted for €313.1m of the total value of permits. During January-February, the value of residential building permits reached €649.7m, compared with €363.7m in the corresponding period of 2025. That was an increase of 78.6 per cent, broadly in line with the strong rise in residential area and dwelling units. However, the value of non-residential building permits declined by 21 per cent, falling to €100.2m from €127m a year earlier. In February, non-residential buildings accounted for €48.4m. Civil engineering projects more than doubled in value, reaching €64.2m in the first two months of the year, compared with €31.4 million in January-February 2025. The increase came to 104.9 per cent, while February alone accounted for €14m. The value of permits for the division of plots also rose sharply, reaching €9.2m in January-February, compared with €4.5m a year earlier. That was an increase of 102.4 per cent. Road construction permits reached €1.7m in the first two months of the year, compared with €507,000 in the same period of 2025, up 229 per cent. Overall, the total value of building permits issued in January-February reached €825.1m, compared with €527.1m in the corresponding period of 2025. In February, permits were issued for 281 single houses, bringing the total for January-February to 610. This compared with 435 in the same period last year, marking an increase of 40.2 per cent. Buildings with two housing units reached 106 in February and 227 in the first two months of the year, compared with 213 a year earlier. Growth in this category was more limited, at 6.6 per cent. Residential apartment blocks recorded the strongest rise, with 1,315 dwelling units authorised in February and 2,563 in January-February. This was more than double the 1,192 units recorded in the same period of 2025, with growth reaching 115 per cent. On the contrary, residential and commercial apartment blocks declined by 31.5 per cent, falling to 63 units in January-February from 92 a year earlier. In February, this category accounted for just six dwelling units. Taken together, the figures point to a construction market still being driven primarily by residential demand, particularly apartment development, while non-residential activity remains more uneven. The service said the data cover building permits authorised for residential and non-residential buildings, as well as other construction activities, including civil engineering projects, the division of plots and road construction. For each project type, Cystat compiles information on the number of permits authorised, the area and value of the project, and the number of dwelling units expected to be built. The report also noted that, following the administrative reform, the authority for issuing building permits was transferred on July 1, 2024 from local administration authorities to the newly established Local Government Organisations. At the same time, the integrated information system ‘Ippodamos’ came into operation, with all applications now processed electronically by the local government organisations. This also includes a large volume of older applications that had apparently been submitted in printed form before July 1, 2024.