The services sector in Cyprus has shown notable growth in the second quarter of 2025, while the real estate market has experienced a downturn. The turnover value index for services and transport recorded mixed results when compared to the same period in 2024.
Services sector: Impressive Growth in Accommodation and Food Services
According to the state statistical service, Cystat, accommodation and food service activities surged by 11.7 per cent. This included a remarkable 13.9 per cent increase in accommodation services, alongside a 9.3 per cent rise in food and beverage services. These figures highlight a robust recovery in the hospitality sector.
Administrative and Support Services on the Rise
Growth was also evident in administrative and support service activities, which saw an overall increase of 7.2 per cent. Within this category, rental and leasing activities led the way with an increase of 7.8 per cent, while employment activities grew by 1.4 per cent and travel agency and tour operator services rose by 4.9 per cent.
Security and Investigation Services Flourish
Security and investigation activities experienced a significant boost, climbing by 11.4 per cent. Additionally, office administrative and other support activities also saw growth, increasing by 9.6 per cent, indicating a thriving environment for various support sectors.
Information and Communication Industries Advance
The information and communication sector recorded a positive trajectory, with an overall advancement of 4.4 per cent. Within this sector, publishing saw a rise of 5.2 per cent, while programming and broadcasting increased by 3 per cent. Telecommunications recorded a modest rise of 2.8 per cent, and computer programming and related services grew by 3.4 per cent.
Mixed Results for Professional Services
Professional, scientific and technical activities observed an increase of 3.6 per cent. Legal and accounting services rose by 3.3 per cent, alongside a 3.5 per cent increase in head office and management consultancy services. However, not all professional sectors fared well; architectural and engineering activities declined by 3.1 per cent, and motion picture and sound recording activities fell by 3.3 per cent.
Transport and Storage Activities Show Modest Growth
Transport and storage activities increased by 2.1 per cent, with land transport growing by 5.7 per cent, water transport by 4 per cent, and air transport by 0.7 per cent. Warehousing and support services also saw an increase of 1.6 per cent, while postal and courier activities rose by 2 per cent.
Real Estate Market Faces Challenges
In stark contrast to the growth seen in the services sector, real estate activities experienced a decline. The turnover for real estate fell by 1.8 per cent in the second quarter of 2025 compared to the same quarter in 2024. This downturn highlights ongoing challenges in the property market.
Half-Year Figures Reflect Broader Trends
Looking at the first half of 2025, the services sector continued to show strength. Accommodation and food service activities increased by 10.9 per cent, while administrative and support service activities rose by 8.2 per cent. Information and communication sectors grew by 6.3 per cent, and professional services observed a rise of 4.1 per cent. However, the real estate sector recorded a more significant decline of 3.4 per cent.
