Cyprus recorded a further rise in building activity in May 2026, with the statistical service (Cystat) reporting 735 building permits authorised — up 21.1 per cent on the same month last year. The permits carried a combined value of €428.2 million, covered 352,126 square metres, and provided for the construction of 1,847 dwelling units.
The five-month picture
- 3,650 permits issued between January and May 2026, up 32.1 per cent from 2,764 a year earlier
- Total value rose 43.9 per cent, from €1.46bn to €2.10bn
- Authorised floor area expanded 43.1 per cent, from 1.19m to 1.70m square metres
- Planned homes recorded the strongest increase, climbing 63.7 per cent to 8,978 units, from 5,484 in the same period of 2025
Residential leads, apartments dominate
Residential building permits reached 2,684 over the five months, up 31.3 per cent, with 530 issued in May alone. Residential developments were valued at €1.79bn — up 61.6 per cent from €1.11bn — and the authorised area of residential buildings increased 62.8 per cent to 1.54m square metres.
The shift towards higher-density housing is clear: permits provided for 6,667 homes in residential apartment blocks, up 90.6 per cent from 3,497, and apartment blocks accounted for 1,483 of the 1,847 homes approved in May alone. Single houses rose a more modest 7.3 per cent to 1,469, while homes in two-unit buildings increased 20 per cent to 547.
Non-residential cools, infrastructure heats up
- Non-residential permits rose 7.1 per cent in number (308 to 330) but their authorised area fell 40.2 per cent and their value dropped 28.8 per cent to €196.5m
- Civil engineering permits increased 26 per cent to 213, with authorised area up 372.8 per cent and values up 39.9 per cent to €85.8m
- Plot division permits jumped 62.6 per cent to 343, with values up 99.2 per cent to €23.4m
- Road construction permits climbed 150 per cent, from 32 to 80
What this means for buyers and investors
A 64 per cent jump in planned homes — overwhelmingly in apartment blocks — signals a substantial wave of new supply reaching the market over the next two to three years, particularly in the coastal cities. For buyers, that means more choice and potentially more negotiating room on new-build apartments. For the construction sector, the pipeline of €2.1bn in permitted works points to sustained activity well into 2027.
The sharp rise in plot divisions and road construction also suggests developers are preparing land for the next cycle of projects, often a leading indicator of where new residential zones will emerge.
Based on reporting by the Cyprus Mail Source.
