Building activity across Cyprus recorded strong growth during the first two months of 2026, according to the latest figures from the Statistical Service, highlighting continued momentum in the residential property sector.
The total floor area of licensed developments increased by 54.9% year-on-year, while project values, building permits and the number of planned residential units also posted substantial gains.
Between January and February 2026, the total floor area of licensed projects reached 661,400 square metres, compared with 427,100 square metres during the same period in 2025.
Residential building development leads construction growth
The sharp increase was primarily driven by residential developments, where licensed floor area rose by 79.7% to 578,609 square metres, up from 321,930 square metres a year earlier.
Civil engineering projects also recorded exceptional growth. Licensed floor area surged by 1,749.7%, reaching 16,666 square metres compared with just 901 square metres during the corresponding period of 2025.
In contrast, non-residential buildings experienced a decline, with licensed floor area falling by 36.6% to 66,108 square metres.
Larnaca records the strongest regional growth
At district level, Larnaca posted the largest percentage increase in licensed development area. Floor space rose to 174,400 square metres from 45,900 square metres a year earlier, representing growth of 279.7%. Compared with 2019, the increase stands at 342.7%.
Paphos followed with a 114.6% rise, reaching 79,500 square metres. Relative to 2019, licensed development area in the district has increased by 213.6%.
Nicosia recorded the highest overall volume of licensed development, reaching 217,400 square metres. This represented a 51.4% increase compared with the first two months of 2025 and a 214.9% rise compared with 2019.
Limassol reported 174,500 square metres of licensed development area, up 4.8% year-on-year and 18.9% higher than 2019 levels.
Famagusta was the only district to register a decline. Licensed floor area fell by 54.3% to 15,600 square metres from 34,100 square metres during the same period last year. Despite the annual drop, activity remained 263.4% higher than in 2019.
Overall, the total licensed development area across Cyprus increased by 54.9% compared with the first two months of 2025 and by 132.1% compared with 2019.
Project values and building permits continue to rise
The total value of licensed developments reached €825.1 million during January and February 2026, up 56.5% from €527.1 million in the corresponding period of 2025.
Residential projects accounted for much of the increase, with their value climbing by 78.6% to €649.7 million from €363.7 million a year earlier.
Civil engineering project values rose by 104.9% to €64.2 million. The value of permits for land subdivision increased by 102.4%, while road construction permits recorded a 229.0% rise.
Meanwhile, the value of non-residential developments declined by 21.0% to €100.2 million from €127.0 million.
A total of 1,500 building permits were issued during the first two months of 2026, compared with 1,008 permits during the same period in 2025, representing growth of 48.8%.
In February alone, authorities issued 711 building permits with a combined value of €379.9 million and a total floor area of 314,700 square metres.
Permits for residential buildings increased by 53.4%, while civil engineering permits rose by 40.6%. Land subdivision permits grew by 54.9%, and permits for road construction more than quadrupled, increasing by 328.6%. Non-residential building permits recorded a more modest rise of 7.9%.
Nearly 3,500 new homes planned
The permits issued during the first two months of 2026 are expected to result in the construction of 3,463 residential units, compared with 1,932 units during the same period last year, representing growth of 79.2%.
Detached houses increased by 40.2% to 610 units, while semi-detached homes rose by 6.6% to 227 units.
The strongest growth was recorded in apartment developments. Planned units in residential apartment buildings jumped by 115.0%, reaching 2,563 units compared with 1,192 a year earlier.
Mixed-use apartment developments moved in the opposite direction, falling by 31.5% to 63 units.
The latest figures underline the strength of Cyprus’ residential property market, with housing developments continuing to drive construction activity, investment and new supply across much of the island.
SOURCE: Cyprus Property News