Cyprus construction permits drop in number, total value increases

The Cyprus property market is witnessing a downturn in the issuance of construction permits, with a simultaneous increase in the total value of authorised units.

This trend is evident in both the July 2023 monthly statistics and the figures for the first seven months of the year.

According to data from the Cyprus Statistical Service (Cystat), the number of construction permits issued by municipal authorities and district administrations in July 2023 totalled 604, showing a slight decrease compared to the 610 permits granted in June 2023.

However, what stands out is the total value associated with these permits, which reached an impressive €262.3 million.

These permits are set to cover a combined area of 199.4 thousand square metres and pave the way for the construction of 959 residential units.

Despite the marginal dip in the number of permits from June to July, the total permit value surged by 4.5 per cent.

In contrast, the total area saw a slight reduction of 0.54 per cent, while the number of residential units dropped by 15.9 per cent during the same period.

Zooming out to the broader perspective, from January to July 2023, a total of 4,212 construction permits were granted, marking a 6.8 per cent decline compared to the same period in the previous year.

However, this drop in permits did not translate into a decrease in value; the total value of these permits actually increased by an impressive 14.8 per cent, with the overall covered area growing by 2.6 per cent. Interestingly, the number of residential units showed a 5.3 per cent increase.

These construction permits serve as a significant indicator for predicting future activities in the construction sector, and while the market may be experiencing fluctuations in permit numbers, the underlying value suggests that the Cyprus property market remains dynamic and attractive to investors.