The number of building permits approved in Cyprus saw a significant decline in September 2024, according to data released by the Statistical Service.
The drop of 30.9% is attributed to operational challenges following the introduction of the new integrated information system, “Ippodamos” and changes in the permit approval process.
In September 2024, a total of 423 building permits were approved, a sharp decrease from the 612 permits issued in September 2023. These permits accounted for a total construction value of €160.5 million, covering an area of 129,100 square meters. Once completed, the approved permits are expected to contribute 706 new residential units to the housing stock.
As of July 1, 2024, authority over building permits was transferred from municipalities and district administration offices to the newly established Local Government Organizations (LGOs). This transition, coupled with the implementation of the “Ippodamos” system, has introduced operational challenges that have slowed the processing of permits.
Despite the sharp drop in September, overall figures for the first nine months of 2024 indicate growth in the construction sector. Between January and September 2024, a total of 5,485 building permits were issued, reflecting a 4.0% increase compared to the 5,274 permits granted during the same period in 2023.
Moreover, the total value of these permits rose by 8.9%, while the total area covered expanded by 10.6%. The number of dwelling units authorized also saw a 10.0% rise. These figures suggest that while the recent administrative changes have caused short-term disruptions, the construction sector remains on an overall growth trajectory.
The transition to the LGO system and the rollout of “Ippodamos” aim to streamline and modernize the building permit process in the long term. However, the initial implementation phase has presented technical and bureaucratic challenges that have affected the approval timeline. Industry stakeholders are closely monitoring the situation, as delays in the permitting process could impact project timelines and investment plans.
Once the teething problems have been ironed out, the long-term impact of the new system remains to be seen. If successfully implemented, “Ippodamos” could lead to greater efficiency and transparency in the building permit process, ultimately benefiting the construction sector and urban development in Cyprus.
