Construction sector in Cyprus shifts to residential high-rise development

During the first half of 2026, the Cypriot construction sector underwent a significant structural shift, abandoning large commercial projects in favor of massive residential development. According to data from the Statistical Service of Cyprus (Cystat), 11,100 residential units were licensed between January and June 2026, with 8,669 of these being apartment units. This high-density housing represents 78% of all new construction, as developers prioritize urban projects to maximize land utility while buyers seek apartments to manage monthly housing costs amid high interest rates.

Historical data highlights the scale of this change. In 2016, the total area licensed for apartments was 124,720 square meters; by 2026, this figure surged to 1.51 million square meters, marking an increase of 1,112%. While the average size of an apartment has seen a marginal decrease from 180 to 174.4 square meters, the sector remains heavily focused on high-rise residential growth. Furthermore, mixed-use buildings, which combine ground-floor retail or office space with residential units, have seen a massive rise compared to their near-absence in 2016, becoming a key component of current construction trends.