Cyprus approves 2,276 building permits in first quarter

Cyprus recorded a sharp increase in building activity during the first quarter of 2026, with the state statistical service (Cystat) reporting that the number of building permits issued rose by a whopping 44.1 per cent compared with the same period last year.

According to Cystat, 776 building permits were authorised during March 2026, with a combined value of €433.1 million and a total floor area of 353,900 square metres.

The permits provide for the construction of 1,940 dwelling units, underlining continued strength in the residential development pipeline.

For the January to March 2026 period, a total of 2,276 building permits were issued, compared with 1,580 during the corresponding period of 2025.

This represents an increase of 44.1 per cent in the number of permits issued year-on-year.

The total value of the permits also increased significantly, rising by 41.6 per cent, while the total authorised floor area expanded by 40.2 per cent.

The number of approved dwelling units recorded the strongest growth, increasing by 58.4 per cent compared with the first quarter of 2025.

The latest figures suggest developers continue to respond to sustained demand for residential and commercial property, despite higher construction costs and broader economic uncertainty.

The increase in permits also points to a strong pipeline of future construction activity, as building permits generally precede the start of development projects by several months.

The latest figures follow other recent indicators pointing to continued resilience in Cyprus’ construction and property sectors.

Earlier figures released by Cystat showed that the Index of Production in Construction reached 120.74 points in the first quarter of 2026, based on 2021 as the reference year, representing a 0.7 per cent year-on-year increase in construction output.

At the same time, the Output Prices Index in Construction climbed to 129.46 points, reflecting a 3.0 per cent increase compared with the fourth quarter of 2025 and a 4.7 per cent rise from the first quarter of last year, indicating that construction costs continue to move upwards.

The property market has also remained resilient. According to Eurostat, house sales in Cyprus increased by 3.8 per cent in 2025, reversing a 1.1 per cent decline recorded in 2024.

The recovery followed particularly strong growth in earlier years, with house sales rising by 10.8 per cent in 2023 and 25.5 per cent in 2022.

Housing costs have also continued to rise. Eurostat also reported that rental prices in Cyprus increased steadily on a month-on-month basis throughout the first five months of 2026.

At the same time, house prices rose by 1.6 per cent in the first quarter of 2026 compared with the previous quarter.

Taken together, the latest figures indicate that construction activity, housing demand and property values continue to support Cyprus’ real estate sector, although developers continue to face rising building costs as new projects move from the planning stage to construction.