Cyprus reports surge in building permits as property sector faces challenges

Cyprus experienced a significant rise in construction activity during the first five months of 2026, according to the statistical service Cystat. In May 2026 alone, 735 building permits were authorized, marking a 21.1 per cent increase year-on-year with a total value of €428.2 million. For the January to May period, total permits reached 3,650—a 32.1 per cent rise—with their value jumping 43.9 per cent to €2.10 billion. The number of planned residential units saw the most substantial growth, increasing by 63.7 per cent to 8,978 units.

Despite the construction boom, experts and officials at the Cyprus Property Show highlighted structural weaknesses and rising costs impacting the market. While 21,387 property transfers were recorded in 2025 with a transaction value of €4.73 billion, the industry faces long-term sustainability concerns. Interior Minister Konstantinos Ioannou emphasized that the government considers housing a top priority, announcing plans to revise key planning frameworks to better support urban development and the national economy. Future government efforts will focus on implementing a comprehensive strategy to manage housing supply and address these emerging economic challenges.