Building permits soar as construction sector activity expands

Cyprus’ economy continued to display a mixed but generally resilient performance in the opening months of 2026, with strong growth in construction activity and vehicle registrations offset by weaker exports and a sharp decline in tourist arrivals, according to the Cyprus Statistical Service (Cystat).

Among the indicators showing positive momentum, manufacturing production rose by 0.5 per cent during the period from January to March 2026 compared with the corresponding period of 2025.

At the same time, the construction sector posted a substantial increase in activity.

According to Cystat, the total area covered by authorised building permits reached 661,400 square metres during January and February 2026.

This represented a year-on-year increase of 54.9 per cent compared with the first two months of 2025.

The figures also pointed to strong growth in the automotive market.

Total motor vehicle registrations increased by 15.1 per cent during the January to April period, reaching 18,570 vehicles.

Within this category, private saloon car registrations climbed by 18.2 per cent, reaching 12,866 vehicles.

Registrations of light goods vehicles increased by 13.4 per cent, reaching 1,781 units over the same period.

Inflation remained relatively subdued during the first four months of the year.

According to the bulletin, the Consumer Price Index rose by 1.1 per cent during January to April 2026 compared with the corresponding period of the previous year.

Trade figures showed mixed trends, with imports continuing to rise while exports declined.

The total value of imported goods reached €4.697 billion during the first four months of the year.

This represented an increase of 4.8 per cent compared with the same period of 2025.

Meanwhile, the total value of exports amounted to €1.639 billion, recording a decline of 9.3 per cent.

Tourism, one of the country’s most important sectors, experienced a significant slowdown during the period under review.

According to Cystat, tourist arrivals totalled 710,370 between January and April 2026, compared with 865,326 during the same period last year.

As a result, the number of visitors to Cyprus recorded a year-on-year decrease of 17.9 per cent.