Filenews 27 November 2025 - by Angelos Angelodimou
The problems related to the issuance of building permits remain largely unresolved, which creates side effects for the entire real estate market sector.
As market professionals have informed us, despite the small improvements, the situation in the District Local Government Organizations (EOA), which are now the competent authorities for issuing these licenses, remains problematic, as a result of which it puts a brake on growth and creates concern for the economy as a whole.
A few days ago, the leadership of the Federation of Cyprus Building Contractors' Associations (OSEOK) had a meeting with the presidents of the District Local Government Organizations (EOA), during which the issue of permits was examined and ways to resolve the delays that continue to be observed were discussed.
It is characteristic that the problem in the issuance of building permits is also clearly reflected in the data issued every month by the Statistical Service, which, as we have been told, no longer reflect the trends of the real estate market, nor can any clear conclusion be drawn from the number of these permits.
It is recalled that, as of July 1, 2024, the responsibility for issuing building permits was transferred from the municipalities and district administrations to the then newly established Provincial Self-Government Organizations (EOA) and the licensing procedures are carried out through the new integrated information system "Hippodamus".
However, it is generally accepted that this transition did not take place in a smooth way, with the result that instead of reducing the problems that existed, as was the goal of those responsible with this change, they increased.
And this is because:
(1) The NQs took over these new responsibilities, with a reduced number of staff, who were unable to carry out the volume of work entrusted to them
(2) The NNCs did not assume these responsibilities starting from scratch, but received a large number of cases which were pending from the municipalities and district administrations, with the result that the problem of delays started from the first day of the new procedure.
(3) The transfer of responsibilities from one authority to another took place at a time of growth for the real estate sector, which resulted in an increased number of new building permits, which were added to the permits already pending.
(4) New areas have been added to the responsibilities of the NGOs in relation to the issuance of building permits, resulting in another factor which has contributed to an increase in the workload of newly established organisations.
Change of designs
The new state of affairs has resulted in serious problems in the real estate market, which, however, do not stay there, but have an impact both on the investment part, as well as on the plans of households and businesses, which were counting on having their new premises within a specific timeframe, however these plans were overturned and to a significant extent.
According to our information, a large number of developments have been frozen, due to delays in the issuance of building permits. This situation does not only create a problem in the market, but also in the name of our country as an investment destination.
The delays are mainly found in large developments, since, as we have been told, a project took two years to receive a planning permit and when it received it it could not proceed as even then it had not secured a building permit.
According to our information, a problem is also found at another stage of developments, that of the temporary water supply.
As is well known, a property receives a temporary permit for water supply, so that its completion can proceed smoothly and then receive the final permit. So there seems to be a problem, which also causes delays.
OSEOK-The meeting with the OAs
It is noted that during the meeting with OSEOK, the presidents of the HOAs appeared willing to help the situation and take measures to speed up the procedures.
They also stressed that the strengthening of investment activity and the improvement of licensing times are central axes of their mission.
As they mentioned, the achievement of these goals is linked to the further autonomy of the Organizations, the completion of their staffing and the strengthening of their financial resources.
At the same time, it was pointed out that – despite the large volume of pending issues received in July 2024 – the current rate of processing applications exceeds the new submissions, which is an indication of a positive course.
