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Building permits skyrocket in June

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The number of building permits issued in June jumped to a post-Covid high of 1,528, triple the monthly average of the past five years, due to growing demand for residential units, as well as a rush by property developers to secure permits prior to the municipal elections and reform of issuing authorities.

The Cyprus statistical service Cystat said that the number of building permits authorised by the municipal authorities and the district administration offices in June stood at 1,528. The total value of these permits reached €781.6 mln and the total area 594,900 square metres. These building permits provide for the construction of 2,772 dwelling units.

During the January-June period, a total 4,782 building permits were issued compared to 3,608 in the first half of 2023, an increase of 32.5%. The total value of these permits increased by 44.4% and the total area by 46.5%. The number of dwelling units recorded an increase of 44.4%.

Cystat said that the noteworthy increase in the number of building permits issued in June is to a large extent the result of the efforts made by the issuing authorities to process a large part of the backlog of applications, in view of the June 9 municipal elections and subsequent merger of municipalities.

As of July 1, the authority of issuing building permits was transferred from the municipalities and the district administration offices to the newly founded Local Government Organisations, that also absorbed pubic utilities, such as water boards and sewerage networks.

The majority of building permits (1,008) in June were issued for residential buildings, accounting for nearly a third of all licenses in this category (3,171) throughout the first half of this year.

A booming demand for student housing and city-centre accommodation for white-collar workers, mainly in the heart of Limassol, has driven property sale and rent prices, creating a need for additional units.

At 450,614 sq.m., residential units accounted for three quarters of the entire area requested in January-June (594,866 sq.m.), while in value (€540.98 mln) represented 69% of the entire first half of 2024 (€781.6 mln).

In June, most of the housing units in residential projects were for apartments (1,841), detached houses (496), mixed-use residential and commercial apartment blocks (283) and semi-detached houses (152).