Construction output in the EU has shown signs of recovery, with a notable increase of 1.2 per cent in December 2025 compared to November 2025, as reported by Eurostat. In the euro area, the rise was slightly lower at 0.9 per cent.
This positive shift comes after a challenging November, during which production in construction had declined by 1.5 per cent across both the euro area and the EU. Year-on-year comparisons reveal a more complex picture, with a 0.9 per cent drop in euro area construction output when compared to December 2024, while the EU’s output remained stable.
Construction output: Monthly Performance Variances
The December recovery was marked by significant growth in various sectors. Within the euro area, building construction rose by 0.9 per cent, civil engineering saw a substantial increase of 2.3 per cent, and specialised construction activities grew by 0.6 per cent. In the broader EU context, building construction recorded a 1.2 per cent increase, civil engineering surged by 3.9 per cent, and specialised activities saw a 0.9 per cent rise.
Regional Highlights and Lows
Among EU Member States, Hungary experienced the highest monthly increase in construction output at 6.6 per cent, followed by Poland at 5.1 per cent and Slovakia at 4.0 per cent. Conversely, Austria recorded the most significant decrease at 9.2 per cent, with Slovenia and Bulgaria following at 3.2 per cent and 2.3 per cent, respectively.
Annual Trends in Construction
On an annual scale, the picture varied significantly across the euro area. Construction of buildings declined by 3.3 per cent in December 2025 compared to the same month in the previous year, while civil engineering increased by 1.6 per cent, and specialised construction activities rose by 0.2 per cent. In the EU, building construction fell by 0.7 per cent year-on-year, but civil engineering and specialised activities recorded modest gains of 0.9 per cent and 1.1 per cent, respectively.
Member State Performance
Austria faced the greatest annual decrease in construction output at 12.3 per cent, followed by Belgium and Spain, which saw declines of 4.3 per cent and 3.9 per cent. In contrast, Slovakia was among the top performers with an 11.6 per cent increase, alongside Slovenia at 10.2 per cent and Finland at 6.6 per cent.
Insights from Cyprus
While Cyprus data was not included in the Eurostat release, recent local statistics indicate ongoing momentum in its construction and property sectors. The Cyprus Statistical Service reported that the Price Index of Construction Materials rose to 118.89 units in January 2026, reflecting a monthly increase of 0.12 per cent and a year-on-year rise of 1.09 per cent.
The increase in construction material prices was driven by significant annual rises in minerals at 2.91 per cent and electromechanical products at 2.55 per cent. Other categories, such as wood and insulation materials, recorded increases as well, albeit at lower rates.
Residential Property Market Activity
Further evidence of a robust construction environment in Cyprus emerged from Landbank Analytics, which revealed that the market for newly built residential properties exceeded €2.5 billion in 2025. A total of 7,819 contracts were filed for new homes, with apartments making up the majority at 6,382 transactions, generating €1.77 billion in value.
The report highlighted a significant transaction in Limassol, where an apartment sold for approximately €15.2 million, while a house reached a sale price of about €6.2 million. In Nicosia, 2,171 new residential transactions reflected steady demand, with average apartment prices at roughly €190,000, the lowest in the country, and houses averaging around €315,000.
Building Permits on the Rise
In terms of building activity, Cyprus demonstrated growth in October 2025, with 855 building permits authorised, valued at €447.6 million. This represents a 9 per cent increase in the total number of permits year-on-year. The value of licensed projects also rose by 27.7 per cent, indicating a vibrant construction sector.
The surge in residential projects accounted for the largest share of new housing, with apartment buildings reaching 8,519 units compared to 5,958 the previous year. In contrast, mixed residential-commercial buildings saw a sharp decline in units approved.
