Delays in building permits have frozen major projects in Cyprus

Delays in issuing building permits in Cyprus have led to the suspension of several major projects, industry representatives reported on November 27, 2025. The authority to issue permits was transferred to district local government organizations on July 1, 2024, and licensing procedures were moved to the integrated information system "Ippodamos."

Experts highlight four main causes of bottlenecks: district organizations started work with insufficient staff; they inherited a significant volume of unfinished cases from municipalities and provincial administrations; the transfer of authority coincided with growth in the construction sector and an increase in new applications; organizations were assigned additional areas of responsibility, increasing their workload.

According to sources, Statistical Service data no longer reflect the real market dynamics due to accumulated inconsistencies in permit accounting. Delays are especially concentrated in large developments: one project received planning permission after two years but still could not obtain a building permit. There are also issues with obtaining temporary water supply, which delays the commissioning of facilities.

Chairpersons of district organizations, in a meeting with the Cyprus Construction Contractors Association (OSEOK), expressed readiness to expedite procedures. They linked the improvement of timelines to further organizational autonomy, completion of staffing, and strengthening of financial resources. Representatives noted that the current processing speed of applications exceeds the rate of new submissions, indicating positive progress in resolving accumulated cases.