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New Record In Passenger Traffic

Cyprus has achieved a remarkable milestone in its aviation sector, with a record-breaking 6.6 million passengers travelling to and from the island between January and July 2024. This unprecedented surge in passenger traffic underscores the island’s growing appeal as a tourist destination and a critical hub in the Eastern Mediterranean.

Hermes Airports, the operator of Larnaka and Paphos airports, reported that passenger numbers have significantly rebounded, even surpassing pre-pandemic levels. The June 2023 figures alone showed a 105% increase compared to the same period in 2022. This surge reflects not only a recovery from the pandemic’s impact but also the effectiveness of Cyprus’s strategic efforts to enhance its connectivity and tourism appeal. With over 55 airlines operating 156 routes to 38 countries, Cyprus has firmly positioned itself as a key player in regional travel.

July witnessed a further rise, with 1.5 million passengers recorded, marginally above the July 2022 figures. This growth trend is expected to continue in August, traditionally the peak travel month, which could see passenger traffic exceed 1.5 million. The anticipated figures for August indicate a strong finish for the summer season, reinforcing Cyprus’s position as a favoured destination.

Despite the year’s challenging start, marked by external factors such as geopolitical tensions and global economic uncertainties, the resilience of Cyprus’s tourism and aviation sectors is commendable. Maria Kouroupi, Hermes Airports’ Director of Aviation Development, highlighted the concerted efforts to stabilise and grow the sector, aiming to make 2024 a landmark year for Cyprus tourism.

For businesses and investors, these numbers signal robust growth potential in Cyprus’s tourism and related sectors. The increasing passenger traffic not only boosts the local economy but also opens up new opportunities for investment in infrastructure, services, and hospitality industries.

Cyprus Construction Trends: Permit Count Slips While Value and Scale Surge in 2025

The Cyprus Statistical Service (Cystat) has reported a notable shift in the construction landscape for 2025. The latest figures reveal a modest 1.9% decline in building permits issued in March compared to the same month last year, signaling a nuanced trend in the nation’s developmental activities.

Permit Count Decline in March

In March 2025, authorities authorised 572 building permits—down from 583 in March 2024. The permits, which total a value of €361.5 million and cover 296,900 square metres of construction, underscore a cautious pace in permit approval despite ongoing projects. Notably, these permits are set to facilitate the construction of 1,480 dwelling units, reflecting an underlying demand in the housing sector.

Q1 2025: Growth in Value, Construction Area, and Dwelling Units

While the number of permits in the first quarter (January to March) decreased by 15.8% from 1,876 to 1,580, more significant, economically relevant metrics saw robust growth. Total permit value surged by 21.7%, and the authorised construction area expanded by 15.6%. Additionally, the number of prospective dwelling units increased by 16.7% compared to the corresponding period last year. This divergence suggests that although fewer permits were issued, the scale and ambition of the approved projects have intensified.

New Regulatory Framework and the Ippodamos System

Since 1 July 2024, a pivotal transition has taken place in permit administration. The responsibility for issuing permits has moved from municipalities and district administration offices to the newly established local government organisations (EOAs). The integrated information system, Ippodamos, now oversees the licensing process, streamlining data collection on both residential and non-residential projects across urban and rural areas.

Comprehensive Data Collection for Enhanced Oversight

The Ippodamos system categorises construction projects using the EU Classification of Types of Construction (CC). This platform gathers extensive data on the number of permits authorised, project area and value, and the expected number of dwelling units. It covers a broad spectrum of construction activities—from new builds and civil engineering projects to plot divisions and road construction—while excluding renewals and building divisions. The thoroughness of this new regulatory structure promises greater operational transparency and more informed decision-making for policymakers and industry stakeholders.

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