Cyprus construction sector posts strong growth in Q1 2026

Data for the first quarter of 2026 show that Cyprus' construction sector remained highly resilient, driven by a surge in new projects and a favourable business climate. Building permits rose 44% year‑on‑year to 2,276, while approved new residential units increased 58% to 5,403. The total approved building area grew 40% to about 1.0 million m² and the value of approved projects jumped 42% to €1.3 billion.

Housing‑loan financing also strengthened, up 19.5% YoY, indicating continued demand for new homes. Gross value added in construction rose 4.9% YoY, compared with 3.9% in the same period of 2025. The construction production index reached 120.7 units and the producer‑price index rose 4.7% YoY to 129.5 units. Analysts note that the figures precede the recent escalation of geopolitical tensions in the Middle East, and upcoming data releases will be key to assessing any impact on investor sentiment.