In September 2024, Cyprus experienced a notable decrease in the number of building permits approved, as reported by the Statistical Service. The decline, measuring 30.9%, is largely associated with operational hurdles following the launch of the new comprehensive information system, “Ippodamos,” and changes within the permit approval framework.

During September 2024, approvals were granted for 423 building permits, a significant reduction from the 612 permits that were issued in September 2023. These permits represent a construction value totaling €160.5 million, covering an area of 129,100 square meters. The completion of the approved projects is anticipated to add 706 new residential units to the property market.

Effective July 1, 2024, the responsibility for issuing building permits was transitioned from municipalities and district administrative offices to the newly formed Local Government Organizations (LGOs). This shift, along with the deployment of the “Ippodamos” system, has led to operational difficulties, subsequently slowing down the permit processing.

Despite the drastic decrease in September, data from the initial nine months of 2024 indicate positive growth in the construction industry. From January to September 2024, 5,485 building permits were issued, marking a 4.0% rise over the 5,274 permits granted in the same timeframe in 2023.

Additionally, the total value of these permits increased by 8.9%, with the covered area expanding by 10.6%. There was also a 10.0% increase in the number of authorized dwelling units. These statistics suggest that despite recent administrative adjustments causing short-term interruptions, the construction industry remains generally on a growth path.

The adoption of the LGO system and the implementation of “Ippodamos” are designed to eventually simplify and update the building permit process. However, during the initial phase of implementation, technical and bureaucratic obstacles have surfaced, affecting the timeline for approvals. Industry participants are watching the developments carefully, as delays might influence project schedules and investment decisions.

Once the initial challenges are resolved, the long-term effects of the new system will become clearer. If executed effectively, “Ippodamos” could enhance efficiency and transparency within the building permit process, ultimately benefiting the growth and development of Cyprus’s construction sector.