The sharp rise in building permits is a positive sign for Cyprus’ construction sector and the economy in general, Cyprus Employers & Industrialists Federation (OEB) and Cyprus Chamber of Commerce and Industry (KEVE) tsaid on Wednesday, while also pointing to strong demand and ongoing challenges facing the sector.
OEB Director General Michael Antoniou highlighted labour shortages as a key constraint on the sector’s ability to meet demand, while CCCI Secretary General Philokypros Roussounides stressed the need to cut bureaucracy and speed up licensing procedures.
According to data released by the Cyprus Statistical Service on Tuesday, 2,915 building permits were issued between January and April 2026, up 35.1 per cent from 2,157 in the same period last year. Their total value increased by 46.1 per cent, total area by 45.5 per cent and the number of housing units by 65 per cent.
Antoniou said construction has traditionally been “one of the engines of the economy”, adding that the figures confirm that real estate remains attractive to both Cypriot and foreign investors. Strong activity in the sector, he said, also helps increase housing supply and could contribute to easing housing pressures.
He identified labour shortages as one of the sector’s main challenges, saying the workforce currently available in Cyprus is insufficient to meet demand. Procedures for securing workers should therefore be further simplified and automated, he added.
Antoniou also pointed to higher raw material, transport and energy costs, noting that construction costs have risen significantly since the COVID-19 pandemic and have come under further pressure from Russia’s invasion of Ukraine and developments in the Middle East.
Despite these pressures, he said “demand remains high”, linking this also to population growth and investment involving a physical presence in Cyprus. He added that lending by financial institutions remains prudent and cautious, estimating that the risk of a property “bubble” is minimal to non-existent.
Roussounides, for his part, said the increase in building permits demonstrates once again the resilience of the Cypriot economy and shows that the construction industry remains on a path of recovery and growth.
He said the figures largely reflect genuine economic activity, although they should be examined in greater detail to determine whether specific investments may have affected individual periods.
Roussounides identified bureaucracy and digitalisation as major challenges, particularly in licensing, saying that a “more flexible, faster and more attractive” system would further strengthen Cyprus’ appeal to investors.
On housing affordability, he said buying a home is “certainly not as easy as it was in previous decades”, as energy costs, raw material prices and geopolitical developments continue to feed into final prices.
