Cyprus construction sector shows resilience in early 2026

The construction sector in Cyprus maintained significant growth during the first quarter of 2026, driven by a steady stream of new projects and a positive business climate. According to an analysis by Eurobank Research, the industry demonstrated notable resilience, supported by stable demand for housing loans and increased construction activity.

Key data reveals that the number of building permits issued during this period reached 2,276, marking a 44% increase compared to the previous year. Alongside the rise in permits, there was a corresponding growth in the number of approved new residential units. Despite these positive indicators, the report notes that these figures precede the recent escalation of geopolitical tensions in the Middle East, which may impact future performance.

While the sector remains robust, analysts highlight labor shortages and broader geopolitical uncertainty as ongoing challenges. Future data releases will be critical in determining whether investment intentions among developers remain strong in the face of these external pressures.