Cyprus issued 735 building permits in May — 21.1% more than a year earlier

Cyprus’s construction sector continues to grow, although construction activity is declining in the EU. In May 2026, Cyprus issued 735 building permits — 21.1% more than a year earlier.

In the first five months of the year, the total value of works covered by the issued permits rose by 43.9% to €2.10 billion. The permitted building area increased by 43.1% to 1.70 million sq. metres. The data was reported by the Statistical Service of Cyprus (CyStat).

The picture is the opposite in the European Union. According to Eurostat data published on 18 September, construction output in July, adjusted for seasonal effects, fell by 0.3% compared with June. Year on year, the indicator dropped by 1.8% in the EU and by 2% in the euro area.

Construction in Hungary saw the sharpest monthly decline, at 4.7%, while Belgium recorded the largest monthly increase, at 2.8%. In annual terms, Finland led with growth of 12.8%, while Spain lost 9.7%.

The cost of materials remains a constraining factor for developers in Cyprus. The construction materials price index rose by 3.39% year on year in August, CyStat reported on Friday. This makes housing less affordable amid high market activity.