Construction sector remains a key pillar of Cyprus economy
Employment in Cyprus' construction sector grows to 39,700 workers amid sustained industry demand Cyprus' construction sector recorded strong growth in 2024, with value added rising by 10. 7 per cent and production expanding across residential, non-residential and civil engineering projects, according to the findings of a survey released on Wednesday by…
Employment in Cyprus’ construction sector grows to 39,700 workers amid sustained industry demandCyprus’construction sector recorded strong growth in 2024, withvalue addedrising by10. 7 per centandproductionexpanding across residential, non-residential and civil engineering projects, according to the findings of a survey released on Wednesday by the Cyprus Statistical Service (Cystat). The survey showed that theproduction value of the broad construction sectorincreased by 7. 4 per cent to€6. 70 billionin 2024, compared with €6. 23 billion in 2023. At the same time,value added at current pricesclimbed by 10. 7 per cent to€1. 75 billion, up from €1. 58 billion a year earlier, reflecting another year of robust activity across the industry. The survey also found thatnew construction reached €3. 82 billionin 2024, representing an annual increase of 6. 4 per cent. Residential buildings led the expansion, with output rising by8. 6 per cent, while non-residential buildings increased by 2. 6 per cent and civil engineering projects by 2. 0 per cent compared with 2023. Employment also continued to grow, with the number of people working in the construction sector increasing by1. 9 per centto39,700 in 2024, compared with38,900 the previous year. The latest figures reinforce the sector’s position asone of the main drivers of the Cypriot economy, despite expectations that overall economic growth will moderate this year because of geopolitical tensions and weaker tourism activity. Recent Cystat data showed that construction activity remained positive in the opening months of 2026. Specifically, theIndex of Production in Constructionincreased by 0. 7 per cent year-on-year during the first quarter. At the same time, theOutput Prices Index in Constructionrose by 4. 7 per cent over the same period, indicating that activity has continued despite higher building costs. Separate Cystat figures also showed thatconstruction material pricescontinued to rise in June, increasing by 3. 12 per cent compared with the same month last year, driven by higher prices for aluminium products, plastics and electrical fixtures. Even so,market indicatorssuggest that investment in the sector remains resilient. According to a recent analysis byEurobank Research,residential construction remained one of the strongest-performing segmentsof the economy during the first quarter of 2026, with housing investment rising by 4. 7 per cent year on year, supported by continued growth in mortgage lending. The bank also pointed to a48. 8 per cent increase in building permitsduring January and February, while the authorised construction area expanded by 56. 5 per cent, signalling a strong pipeline of future projects. Property market activity has also remained relatively robust, withproperty sales increasing by 14. 1 per centduring the first four months of 2026, although growth slowed to 4. 8 per cent in May as demand from overseas buyers weakened. Despite that slowdown, Eurobank expectsconstruction to remain a key pillar of Cyprus’ economic activitythroughout the rest of 2026, supported by favourable financing conditions, sustained demand in the housing market and continued investment, even asexternal risksweigh on other sectors of the economy.