Cyprus issues 44% more building permits as construction pipeline accelerates

Cyprus has issued significantly more building permits in the first quarter of 2026, with 2,276 projects approved compared to 1,580 in the same period last year—a 44% increase.

The figures are striking: developers have secured permits for nearly 2,000 residential units with a combined floor area of 354,000 square metres. The aggregate value of all projects stands at €433 million. The surge suggests that developers remain confident in demand for residential and commercial property, despite rising construction costs.

However, there is a caveat: construction prices continue to climb. The construction price index rose 4.7% year-on-year. Property prices are also moving upward, increasing 1.6% quarter-on-quarter in the first quarter. House sales in 2025 grew 3.8%, whilst rental rates are similarly trending higher.

The takeaway: Cyprus's real estate market remains resilient, but investors should factor in that rising volumes are accompanied by rising costs.

Source: Cyprus Mail Property