Cyprus housing costs saw a slight rise year-on-year, despite a quarterly decline, according to the latest data from Eurostat and Cystat. The House Price Index in Cyprus reached 146.86 units for the third quarter of 2025, based on 2015 as the reference year. This marks a marginal annual increase of 0.1%, contrasting with a 0.3% decrease from the previous quarter.
- This surge in retail activity stands in contrast to modest gains across Europe, where the euro area and EU recorded only slight increases in retail trade volumes.
- These changes aim to enhance the market's responsiveness to current economic conditions and investor interests.
- With shipping increasingly acknowledged as vital to Europe's economic stability, the meeting focused on strategies to enhance the sector's role during Cyprus's presidency.
- As an island nation, Cyprus is positioned to influence policies that protect marine life and support sustainable livelihoods, aligning with Oceana's mission to rebuild ocean abundance.
Housing costs: Shifts in Housing Market Trends
The modest annual rise in housing costs follows stronger growth earlier in the year, where Cyprus experienced a notable 4.5% year-on-year increase in the first quarter and 2.7% in the second quarter. However, the latest quarterly figures suggest a cooling domestic market, diverging from the broader trend of rising housing costs within the European Union.
Tourism Growth in Short-Term Rentals
Despite fluctuations in the housing sector, Cyprus recorded nearly 2 million guest nights in short-term rentals during the second quarter of 2025, as reported by Eurostat. This highlights ongoing growth in platform-based tourism, with total guest nights across the EU increasing by 8.7% compared to the same quarter in 2024.
Bookings made through platforms like Airbnb, Booking.com, and Expedia significantly contributed to this growth. In the third quarter of 2025, the total number of guest nights rose by 28.2% compared to the same period a year earlier, showcasing the resilience of the tourism sector amidst economic fluctuations.
Trade Deficit Continues to Challenge Cyprus
On a less positive note, Cyprus recorded a trade deficit of €7.28 billion during the first eleven months of 2025, indicating that imports continued to outpace exports. Provisional figures from Cystat revealed that total imports of goods in November 2025 amounted to €1.04 billion, down from €1.16 billion in November 2024. This represents a substantial decrease of 10.6%.
Imports from other EU member states accounted for €595.70 million, while imports from third countries reached €442.70 million, highlighting a shift in trade dynamics. Notably, the transfer of economic ownership of vessels in November 2025 was valued at €10 million, a significant drop from €138.70 million in the same month the previous year.
Retail Trade Volumes Surge
In a positive development, retail trade volumes in Cyprus showed the strongest annual growth in the EU during November 2025, reflecting an increase in consumer spending. Eurostat reported that seasonally adjusted retail trade volume rose by 0.2% compared to October 2025, while the annual increase in the calendar-adjusted retail sales index was 2.3% in both the euro area and the EU.
This surge in retail activity stands in contrast to modest gains across Europe, where the euro area and EU recorded only slight increases in retail trade volumes.
Employment Figures Remain Stable
In terms of employment, Cyprus maintained a seasonally adjusted unemployment rate of 4.3% in November 2025, which is below the EU average of 6.0%. This figure corresponds to approximately 23,000 unemployed individuals, representing a slight increase from October’s rate of 4.2%. The unemployment rate across the eurozone remained stable at 6.3% during the same period, with Spain recording the highest rate at 10.4%.
Stock Market Adjustments and Future Prospects
The Cyprus Stock Exchange announced changes to its main indices, including the addition of EUROBANK S.A. to both the CSE General Index and the CSE Main Market Index, reflecting updated market data. The adjustment, effective January 8, 2026, includes a weight coefficient of 67% for EUROBANK shares.
These changes aim to enhance the market’s responsiveness to current economic conditions and investor interests.
Environmental Considerations in Shipping
As Cyprus prepares to take over the rotating presidency of the Council of the European Union, discussions on the shipping sector’s priorities have gained momentum. The Cyprus Union of Shipowners met with President Nikos Christodoulides to explore how the presidency can bolster the sector’s institutional standing.
With shipping increasingly acknowledged as vital to Europe’s economic stability, the meeting focused on strategies to enhance the sector’s role during Cyprus’s presidency.
Oceana’s Call for Fisheries Protection
Oceana has urged Cyprus to maintain its leadership in ocean conservation as it assumes the EU Council presidency. The organisation emphasised the importance of securing effective fisheries legislation and promoting ocean health as essential for EU security and climate resilience.
As an island nation, Cyprus is positioned to influence policies that protect marine life and support sustainable livelihoods, aligning with Oceana’s mission to rebuild ocean abundance.
Future Outlook for Cyprus
Despite challenges, Cyprus’s mixed economic signals reflect a complex landscape. With rising housing costs year-on-year, robust tourism growth, and stabilising unemployment rates, the island continues to navigate its economic future. The recent adjustments in retail trade and stock market indices indicate adaptability, while ongoing discussions on environmental and shipping policies highlight Cyprus’s commitment to sustainable development.
