Building permits rise 35.1% in first four months of 2026

Nicosia, Cyprus. Building permits issued in Cyprus rose by 35.1 per cent in the first four months of 2026, with business groups citing stronger construction activity and continued demand for housing.

Permit data

According to the latest figures from the statistical service (Cystat), 2,915 building permits were issued between January and April 2026, compared with 2,157 in the corresponding period of 2025.

The total value of permits increased by 46.1 per cent, while their total floor area rose by 45.5 per cent. The number of planned residential units increased by 65 per cent.

Construction sector outlook

Speaking to the Cyprus News Agency (CNA), Cyprus employers and industrialists federation (Oev) director general Michalis Antoniou said the construction sector had long been one of the engines of the economy and a pillar supporting Cyprus’ return to growth after periods of crisis or recession.

Antoniou said the rise in permits showed that the property sector remained attractive to Cypriot and foreign investors. Higher construction activity was also helping to increase housing supply, offering what he described as at least a partial easing of the housing problem.

Labour and licensing concerns

Antoniou said labour shortages were among the most pressing challenges facing the sector, with the existing workforce insufficient to meet demand for new homes and other developments.

Without sufficient workers, he said, the sector could not accelerate construction or adequately respond to current demand. Although the government had taken steps to address the issue, labour needs remained greater than the available supply, while procedures for securing workers should be further simplified and automated.

“If we satisfy this demand, we will also contribute to alleviating the country’s housing issue,” Antoniou said.

Cyprus chamber of commerce and industry (Keve) secretary general Philokypros Rousounides called for reduced bureaucracy and faster licensing procedures.

Antoniou also said the sector continued to face pressure from raw material, transport and energy costs, most of which could not be controlled through domestic decisions.