Decrease in Issued Building Permits in Cyprus by 15.2% During Initial 2025 Period
Building Permits in Cyprus See Significant Shift in 2025
In the first four months of 2025, Cyprus issued 2,157 building permits, marking a 15.2% decrease compared to the same period the previous year. Despite this decrease, the total value of building projects increased by 15.4%, and the constructed area grew by 13.3%.
The drop in the number of permits can be attributed to a shift in the construction sector's focus and administrative reforms. The key factors driving this change include a shift towards larger, more capital-intensive residential projects, a decline in other construction categories, the implementation of a new digital permit system, and higher construction costs.
The shift towards larger residential projects is evident in the 12.1% growth in residential properties, driven by demand from locals and foreign investors. While the total number of permits fell, the total value of projects and the constructed area both increased significantly.
On the other hand, permits for non-residential buildings dropped by 41.3%, infrastructure by 22.8%, and road construction by an even steeper 77.5%. This reallocation of construction efforts towards residential development reduced the overall permit count but raised the project's aggregate value.
Since July 1, 2024, the authority to issue building permits has shifted from municipalities and district administrations to the District Self-Government Organisations (DSOs) via the digital Ippodamos platform. This transition might have influenced the permit issuance numbers early in 2025, contributing to the permit count decrease despite efficiency goals.
Construction costs per square meter have risen, with realistic residential construction costs in 2025 estimated between €1,700 and €2,500 per m² (excluding land). Higher project costs can lead to fewer but larger projects as developers optimize investment scale.
In April 2025, the number of residential building permits issued was 577, a 13.8% decrease from April 2024. The total value of residential building permits issued in April 2025 was €255.2 million. The total area of residential building projects issued permits for in April 2025 was 204,000 square metres, which is expected to result in 909 new residential units.
Road construction permits in Cyprus dropped by 77.5% between January and April 2025 compared to the same period the previous year. Permits for civil engineering projects also decreased by 22.8%. The number of land division permits issued in April 2025 fell by 19.1% compared to April 2024.
In summary, the decrease in the number of building permits is mainly due to fewer small and non-residential permits and administrative changes, while growth in larger, more valuable residential projects explains the overall rise in project value and residential unit growth despite fewer permits granted.
[1] [Source 1] [2] [Source 2] [3] [Source 3] [4] [Source 4] [5] [Source 5]
Read also:
- Coastal men's disruptions of dolphin gatherings might lead to jail sentences
- California customers overcharged by Walmart face a penalty of $5.6 million due to pricing discrepancies.
- Stripped-down versions of the Model 3 and Model Y electric vehicles will be introduced by Tesla.
- Affordable Electric Vehicles from Ford Set for Sales Debut
