Cyprus’ economy grew by 25.8 per cent in real terms between 2019 and 2024, recording one of the strongest expansions in the European Union since before the Covid-19 pandemic, according to Eurostat figures comparing economic performance across the bloc’s regions.

The increase placed Cyprus well above the EU-wide growth rate of 5.6 per cent over the same period, highlighting the island’s economic expansion between the final pre-pandemic year and 2024.

The figures come alongside more recent data showing that Cyprus recorded the EU’s highest government surplus in 2025 and the largest quarterly decline in public debt relative to gross domestic product (GDP) in the second quarter of 2026, underlining the country’s recent economic and fiscal performance.

Eurostat’s regional comparison covered 244 regions across the EU for which data were available, with 197 recording higher levels of economic activity in 2024 than in 2019.

GDP fell in 46 regions, while the Spanish region of Ciudad de Ceuta recorded no change, the European statistical office reported.

Cyprus’ 25.8 per cent expansion was among the strongest increases recorded across the bloc, although it remained below the exceptional growth rates registered in Ireland and several other regions.

Ireland’s Eastern and Midland region recorded the EU’s largest increase, with real GDP rising by 38 per cent between 2019 and 2024.

The region also had the highest GDP per inhabitant in the EU in 2024, the latest figures showed.

Ireland’s Northern and Western region followed with growth of 36.4 per cent, the second-highest rate across the bloc, while its Southern region recorded an increase of 26 per cent, the sixth-highest.

Outside Ireland, the strongest increases were recorded in Romania’s Bucureşti-Ilfov region, where GDP grew by 33 per cent, Malta, at 32.9 per cent, and the French outermost region of Mayotte, at 32.1 per cent.

Almost all EU capital regions recorded economic growth over the five-year period, with Helsinki-Uusimaa in Finland the sole exception, registering a real GDP decline of 1.9 per cent.

At the other end of the scale, Bulgaria’s Yugoiztochen region recorded the largest contraction, with economic output falling by 20.5 per cent.

Greece’s Dytiki Makedonia region experienced a decline of 18 per cent, while the Dutch region of Groningen contracted by 14 per cent.

Romania’s Sud-Muntenia and Sud-Vest Oltenia regions recorded decreases of 13.5 per cent and 11.3 per cent respectively.

It should be noted, however, that unlike larger EU countries, which are divided into several statistical regions for this comparison, Cyprus is treated as a single region because of its size, meaning the 25.8 per cent growth figure reflects the performance of the entire national economy rather than differences between individual areas.

Stronger public finances

The regional growth figures provide a longer-term perspective on Cyprus’ economic performance, while the latest public finance statistics offer a more recent picture of the country’s fiscal position.

Cyprus recorded a government surplus of 3.6 per cent of GDP in 2025, the highest in the EU, according to figures published by the Cyprus Statistical Service (Cystat) and Eurostat on Wednesday.

The surplus amounted to €1.36 billion, with public revenue reaching almost €15.9 billion, based on audited and verified figures compiled under the European Commission’s Excessive Deficit Procedure.

Moreover, government debt stood at €20.05bn, equivalent to 52.3 per cent of GDP.

Cyprus was one of only five EU member states to record a government surplus last year, alongside Denmark at 2.9 per cent of GDP, Greece at 2 per cent, Ireland at 1.8 per cent and Portugal at 0.7 per cent.

The country also recorded the bloc’s largest quarterly reduction in government debt relative to GDP in the second quarter of 2026.

The debt-to-GDP ratio fell to 48.5 per cent at the end of June, down from 51.5 per cent in the first quarter and 58.1 per cent in the second quarter of 2025.

General government gross debt declined to €19.2bn at the end of June, compared with €20.03bn at the end of March and €21.7bn a year earlier.

Cyprus recorded the largest quarterly decline in government debt relative to GDP in the European Union in the second quarter of 2026, with the ratio falling to 48.5 per cent, according to Eurostat figures published on Wednesday.

The ratio dropped by 3 percentage points from 51.5 per cent in the first quarter and was 9.5 percentage points lower than the 58.1 per cent recorded in the second quarter of 2025.

Cyprus’ general government gross debt stood at €19.2 billion at the end of June 2026, down from €20.03 billion at the end of March and €21.7 billion a year earlier.

The figures underline the continued reduction in the country’s debt burden relative to the size of its economy, with Cyprus recording the second-largest annual decline in the EU after Greece.

Greece’s debt-to-GDP ratio fell by 11.2 percentage points year-on-year, while Cyprus recorded a decline of 9.5 percentage points.

Slovenia and Portugal followed, with decreases of 4.5 and 3.4 percentage points respectively.

Compared with the first quarter of 2026, Cyprus recorded the largest reduction among member states, ahead of Greece, where the ratio fell by 2.7 percentage points.

Hungary recorded a decrease of 2 percentage points, Ireland 1.8 percentage points, Croatia 1.6 percentage points and Slovakia 1 percentage point.

Across the EU, government debt continued to rise in the second quarter, reaching 82.9 per cent of GDP, up from 82.5 per cent in the first quarter.

The euro area’s debt-to-GDP ratio increased to 88.8 per cent from 88.4 per cent over the same period.

Compared with the second quarter of 2025, the EU ratio rose from 81.4 per cent, while the euro area figure increased from 87.3 per cent.

At the end of June, Greece had the EU’s highest government debt ratio, at 140.8 per cent of GDP, followed by Italy at 139.9 per cent, France at 119.1 per cent, Belgium at 110.2 per cent and Spain at 101.4 per cent.

The lowest ratios were recorded in Estonia at 26.1 per cent, Denmark at 27.1 per cent, Luxembourg at 28.2 per cent and Bulgaria at 28.7 per cent.

Compared with the first quarter, government debt ratios increased in 15 member states and decreased in 10, while the figures for the Netherlands and Spain remained unchanged.

The largest quarterly increases were recorded in Poland, where the ratio rose by 3 percentage points, Portugal at 2.1 percentage points, Latvia at 1.9 percentage points, Lithuania at 1.6 percentage points and France at 1.4 percentage points.

Italy and Malta each recorded increases of 1.3 percentage points, while Estonia’s ratio rose by 1.1 percentage points.

On an annual basis, 18 member states recorded higher debt ratios and nine registered declines.

Poland had the largest increase, at 6.7 percentage points, followed by Lithuania at 4.9 percentage points, Belgium at 3.8 percentage points, France at 3.7 percentage points, Luxembourg at 3.6 percentage points and Estonia at 3 percentage points.

Eurostat’s data also showed that Cyprus’ government debt at the end of 2025 amounted to €20.05bn, equivalent to 52.3 per cent of GDP, according to the audited annual figures published by the Cyprus Statistical Service.

The annual figures placed Cyprus among the five EU member states to record a government surplus in 2025, with the country’s surplus reaching 3.6 per cent of GDP.

Looking at government debt across the bloc at the end of 2025, the lowest ratios were recorded in Estonia at 24 per cent of GDP, Luxembourg at 26 per cent, Denmark at 27.2 per cent, Bulgaria at 29.9 per cent, Ireland at 34.8 per cent, Sweden at 35.1 per cent and Lithuania at 39.3 per cent.

Twelve member states had debt ratios above the EU’s 60 per cent reference level, with the highest figures recorded in Greece at 145.4 per cent, Italy at 136.7 per cent, France at 115.7 per cent, Belgium at 108.1 per cent and Spain at 100.5 per cent.

At the end of the second quarter of 2026, debt securities accounted for 84.5 per cent of general government debt in the euro area and 83.9 per cent in the EU.

Loans represented 13.1 per cent of euro area debt and 13.8 per cent of EU debt, while currency and deposits accounted for 2.4 per cent in both.

Eurostat also reported intergovernmental lending, reflecting EU member states’ governments lending to other member states, at 1.3 per cent of GDP in the euro area and 1.1 per cent in the EU at the end of June.

Separately, seasonally adjusted government revenue in the euro area stood at 46.8 per cent of GDP in the second quarter of 2026, down from 46.9 per cent in the first quarter.

Although revenue increased by around €21bn in absolute terms, the rise was outweighed by growth in nominal GDP.

Government expenditure in the euro area increased to 50.1 per cent of GDP from 50 per cent, as seasonally adjusted spending rose by around €28bn.

In the EU, government revenue fell to 46.3 per cent of GDP from 46.4 per cent in the first quarter, as an increase of around €25bn in seasonally adjusted revenue was outweighed by nominal GDP growth.

EU government expenditure rose to 49.8 per cent of GDP from 49.6 per cent, with seasonally adjusted spending increasing by around €42bn.

Cyprus’ seasonally adjusted government surplus stood at 3.3 per cent of GDP in the second quarter of 2026, down from 3.8 per cent in the first quarter.

The surplus had fluctuated during 2025, standing at 3.6 per cent of GDP in the first quarter, 3.3 per cent in the second, 2.9 per cent in the third and 4.3 per cent in the fourth.

The latest quarterly decline followed a 0.5 percentage point decrease in the first quarter of 2026, meaning the surplus-to-GDP ratio fell by a further 0.5 percentage points in the second quarter.

Earlier, Cyprus recorded seasonally adjusted government surpluses of 4.5 per cent of GDP in the second quarter of 2024, 4.3 per cent in the third quarter and 2.9 per cent in the fourth quarter.

The figures were included in Eurostat’s latest government deficit and debt data, based on member states’ second 2026 notifications under the European Union’s Excessive Deficit Procedure and compiled using the European System of Accounts 2010 methodology.

Cyprus recorded the European Union’s highest government surplus in 2025, at 3.6 per cent of gross domestic product (GDP), as public revenue rose to almost €15.9 billion, according to figures published by the Cyprus Statistical Service (Cystat) and Eurostat on Wednesday.

The surplus amounted to €1.36bn, based on audited and verified figures compiled under the European Commission’s Excessive Deficit Procedure, while government debt stood at €20.05bn, equivalent to 52.3 per cent of GDP.

Eurostat’s figures showed that Cyprus was one of only five EU member states to record a government surplus last year, alongside Denmark, at 2.9 per cent of GDP, Greece at 2 per cent, Ireland at 1.8 per cent and Portugal at 0.7 per cent.

All other member states reported deficits, with the largest recorded in Romania at 7.8 per cent of GDP, Poland at 7.2 per cent, Belgium at 5.2 per cent and France at 5.1 per cent.

Eleven member states recorded deficits equal to or greater than 3 per cent of GDP.

Cyprus’ total government revenue rose by 7.7 per cent in 2025, increasing by €1.14bn to €15.9bn from €14.76bn in 2024, Cystat reported.

The increase reflected higher receipts from several major revenue sources, particularly social contributions and taxes on income and wealth.

Revenue from social contributions rose by €379.8 million, or 8.4 per cent, to €4.9bn, compared with €4.52bn in 2024.

Taxes on income and wealth increased by €379.1m, or 10 per cent, to €4.18bn from €3.8bn.

Taxes on production and imports rose by €67.4m, or 1.4 per cent, to €4.75bn, compared with €4.68bn a year earlier.

However, net value added tax revenue fell by €16m, or 0.5 per cent, to €3.15bn from €3.17bn in 2024.

Other current transfers increased by €84.6m, or 21.4 per cent, to €480.1m from €395.5m.

Revenue from the sale of goods and services rose by €161.7m, or 18.1 per cent, to €1.06bn, compared with €894.4m in 2024.

Capital transfers increased by €25.7m, or 7.6 per cent, to €362.6m, while property income received rose by €41.5m, or 34.3 per cent, to €162.6m.

Government expenditure also increased, rising by 9.2 per cent, or €1.22bn, to €14.54bn in 2025 from €13.31bn in 2024.

Compensation of employees, including imputed social contributions and civil servants’ pensions, increased by €295.3m, or 7.6 per cent, to €4.17bn from €3.88bn.

Social transfers rose by €283m, or 5.3 per cent, to €5.59bn, compared with €5.3bn in 2024.

Intermediate consumption, covering goods and services used by government in its operations, increased by €98.5m, or 6.6 per cent, to €1.59bn.

Other current expenditure rose by €22.9m, or 2.7 per cent, to €865.8m.

The most pronounced increase was in capital expenditure, which jumped by 46.4 per cent to €1.76bn from €1.2bn in 2024, an increase of €558.3m.

This comprised gross capital formation of €1.21bn, compared with €963.6m a year earlier, and other capital expenditure of €546.3m, up from €239.3m.

In contrast, property income payable fell by €1.6m, or 0.4 per cent, to €422.6m from €424.2m.

Subsidies decreased by €31.8m, or 18.6 per cent, to €139.6m from €171.4m.

Across the EU, government expenditure in 2025 amounted to 49.4 per cent of GDP, while revenue stood at 46.3 per cent.

In the euro area, expenditure reached 49.8 per cent of GDP and revenue 46.8 per cent.

Fuel prices in Cyprus rose by 24.6 per cent year-on-year in September, accelerating from 19.1 per cent in August, according to Eurostat figures published on Wednesday, as Finance Minister Makis Keravnos warned that the government was focused on containing costs rather than achieving major price reductions.

The increase in the prices of fuels and lubricants for personal transport in Cyprus was below the European Union average of 31.4 per cent, but still reflected the continuing pressure on motorists as energy costs climbed across the bloc.

On a monthly basis, petrol prices in Cyprus rose by 3.8 per cent between August and September, the smallest increase recorded among EU member states.

The rise compared with an EU-wide increase of 6.7 per cent over the same period, while diesel prices across the bloc increased by 5.9 per cent.

The latest figures come as the government faces questions over whether its cost-of-living measures are sufficient to offset rising energy prices.

“Containing fuel prices rather than achieving major decreases is the government’s current policy,” Keravnos said on Tuesday.

Speaking on the sidelines of an event marking European Statistics Day, the finance minister said the authorities were monitoring the impact of recently announced support measures.

An initial assessment by the Consumer Protection Service had found that prices of some essential goods had fallen by 5 per cent, he said.

However, when asked whether rising energy prices had already offset the relief provided by those measures, Keravnos cautioned against expecting substantial reductions.

“Under the circumstances, one should not expect significant decreases,” he said.

Fuel prices rise across Europe

Eurostat reported that EU prices for fuels and lubricants used in personal transport increased by 31.4 per cent in September compared with the same month in 2025.

This followed annual increases of 16.9 per cent in July and 23.8 per cent in August, marking a further acceleration in fuel-related inflation.

Annual increases in September were higher than those recorded in both July and August in 26 of the bloc’s 27 member states.

Bulgaria recorded the largest annual increase, at 42.2 per cent, followed by Estonia at 40.6 per cent and Lithuania at 40.2 per cent.

A further 12 countries registered increases exceeding 30 per cent, with rises ranging from 37.5 per cent in the Czech Republic to 30.3 per cent in Portugal.

Hungary recorded the smallest annual increase, at 6.9 per cent, followed by Ireland at 17.7 per cent and Sweden at 19.9 per cent.

Diesel and petrol costs climb

On a monthly basis, diesel prices across the EU increased by 5.9 per cent in September, slowing from the 8.3 per cent rise recorded in August.

Petrol prices, meanwhile, accelerated, rising by 6.7 per cent in September compared with a 3.3 per cent increase in August.

Diesel prices increased in 26 EU countries between August and September, with the largest rises recorded in Sweden at 12.8 per cent, Latvia at 10.3 per cent and Poland at 9.7 per cent.

The smallest increases were recorded in Spain at 2.4 per cent, Croatia at 2.5 per cent and Romania at 3 per cent.

Petrol prices also rose in 26 member states over the month.

Sweden recorded the largest increase, at 13.8 per cent, followed by Poland at 9.7 per cent and Estonia at 9.5 per cent.

Cyprus registered the smallest monthly increase in petrol prices, at 3.8 per cent, followed by Romania at 4.2 per cent and Slovenia at 4.6 per cent.

The figures underline the continuing pressure on household transport costs, even as the pace of monthly increases differs considerably between member states.

For Cyprus, the latest data provide a mixed picture, with annual fuel-related inflation remaining substantial but the monthly rise in petrol prices among the lowest in the EU.

Cyprus’ reliance on foreign workers grows as unemployment falls

Cyprus’ unemployment rate fell to a historic low of 3.6 per cent in the second quarter of 2026, but demographic changes, housing costs and skills shortages could increasingly constrain the labour market and the economy’s longer-term growth prospects, according to a report by the Central Bank of Cyprus (CBC).

“The labour market is a key indicator of an economy’s resilience and prospects, as it is closely linked to growth, productivity and social welfare,” said Marios Polemidiotis, a member of the CBC’s Economic Analysis and Monetary Policy Division.

In the CBC’s October 2026 Economic Brief, Polemidiotis said Cyprus had maintained a resilient labour market despite successive external shocks since the pandemic, including the energy crisis, inflationary pressures, tighter financial conditions and persistent geopolitical uncertainty.

“Unemployment declined to a historic low of 3.6 per cent of the labour force in the second quarter of 2026, employment continues to expand, inflows of foreign workers remain significant, and labour force participation among Cypriots has been maintained at high levels,” he said.

However, the analysis warned that the scope for increasing employment through the mobilisation of unused labour resources was becoming more limited, making productivity gains increasingly important for future growth.

“Sustaining economic growth is becoming increasingly dependent on continued employment growth and improvements in labour productivity,” Polemidiotis said.

The labour market’s resilience has been supported by the structure of the economy, strong demand for workers, international investment and the adaptability of labour market institutions.

“Tourism, professional services, information technology, financial services, shipping, as well as healthcare and education services have continued to generate substantial demand for labour,” he said, noting that these sectors account for almost 80 per cent of total employment.

Despite the temporary effects of the pandemic, the sectors had demonstrated considerable adaptability and recovered relatively quickly.

Continued foreign investment and the establishment of international companies have also supported job creation, particularly in technology, including financial technology and gaming, investment firms and other professional services.

These businesses have created employment opportunities for highly qualified professionals as well as support personnel, while policies to attract both highly skilled and lower-skilled workers from European Union member states and third countries have helped businesses respond to rising demand.

“The ability to draw on labour from other European Union member states as well as third countries has enabled businesses to respond to increased demand without generating more acute staffing shortages,” Polemidiotis said.

The contribution of non-Cypriot workers has grown significantly, with their share of total employment approaching 28 per cent in 2025.

Polemidiotis also attributed the labour market’s performance to the economic restructuring that followed the 2013 banking crisis, which shifted activity towards more outward-oriented and higher value-added sectors.

“The gradual strengthening and expansion of sectors such as technology, financial services, particularly investment firms, and other professional services contributed to the diversification of the country’s economic base and the creation of new employment opportunities,” he said.

Improvements in measures to activate unemployed people, wider training programmes and the modernisation of public employment services also appear to have contributed to the sustained decline in unemployment.

The fall in unemployment has coincided with increases in both employment and the overall labour force, while the CBC found little evidence that near-full employment had generated significant economic overheating.

“The recent inflationary pressures are primarily attributable to external geopolitical developments,” Polemidiotis said.

Inflation eased following the 2022 energy crisis, wage growth moderated compared with the rates recorded during 2023 and economic growth remained positive, although at a slower pace.

The CBC said these developments suggested that the labour market’s strength reflected underlying resilience in the Cyprus economy, while highlighting the need to examine more closely the relationship between wages and prices in a forthcoming economic brief.

Despite the positive picture, the economy’s reliance on export-oriented services remains a vulnerability.

“A major external shock affecting tourism, professional services and the technology sector, including via a negative impact on foreign investment inflows, could lead to a significant slowdown in job creation,” Polemidiotis said.

Manufacturing and construction also support employment, but their contribution remains relatively small compared with that of larger euro area economies with extensive industrial sectors.

Demographic change presents another major challenge, as population ageing across Europe is expected to limit future growth in Cyprus’ domestic labour force.

“As unemployment has already fallen to exceptionally low levels, the scope for increasing employment via the mobilisation of idle labour resources has become considerably more limited,” he said.

The employment rate among people aged 55 to 64 has risen significantly and contributed more than any other age group to the overall increase in employment, underlining the growing importance of older workers to labour supply.

Cyprus’ dependence on foreign workers also leaves the labour market exposed to changes in international investment and competition among countries seeking to attract skilled professionals.

“Any slowdown in migration inflows, combined with sustained strong labour demand, could lead to greater labour supply constraints,” Polemidiotis warned.

Housing affordability could further restrict the availability and mobility of workers, with rising costs and a limited supply of residential units potentially discouraging both lower-income Cypriot workers and foreign employees from taking up jobs in particular areas.

“These developments could also intensify wage pressures on businesses, either through higher living and housing costs or because of relatively limited labour availability in certain sectors and occupations,” he said.

The CBC noted that low unemployment did not necessarily mean workers’ skills matched employers’ requirements, although there was no evidence of widespread skills mismatches.

Recent European Commission indicators suggest that labour shortages in services, including tourism, technology and professional services, have largely eased, while pressures remain more pronounced in construction.

However, “these shortages do not appear, thus far, to constitute a major constraint on economic activity”, Polemidiotis said.

The decline in long-term unemployment provides further evidence of improved labour market functioning, with the rate falling from around 8 per cent in 2014, following the banking crisis and an increase in discouraged workers outside the labour force, to 2 per cent in 2020 and below 1 per cent by late 2025 and early 2026.

The combination of favourable employment conditions, falling long-term unemployment and easing inflationary pressures is consistent with the possibility that the non-accelerating inflation rate of unemployment (NAIRU), the unemployment level associated with stable inflation, may be lower than in the past.

Polemidiotis said prolonged unemployment could erode skills and weaken people’s connection to the labour market, potentially raising structural unemployment.

Looking ahead, “future growth will no longer be able to rely primarily on rises in the number of workers but will instead depend increasingly on gains in labour productivity”, he said.

The CBC said policy should focus on increasing participation among women, older workers and young people, including through more affordable childcare, flexible working arrangements, stronger parental leave provisions and expanded apprenticeships, internships and vocational training.

“The development of human capital and the improvement of labour market matching represent important policy priorities,” Polemidiotis said.

The analysis also called for stronger science, technology, engineering and mathematics skills, digital capabilities and artificial intelligence competencies, alongside training tailored to employers’ needs, faster recognition of professional qualifications and digital tools to connect jobseekers with vacancies.

Maintaining a flexible economic migration framework, simplifying procedures and targeting recruitment in occupations experiencing high demand were also identified as priorities.

What is more, Polemidiotis said improving housing availability and affordability could help make Cyprus more attractive to skilled workers and improve the functioning of the labour market.

“Policies that strengthen labour force participation, skills development, the efficient functioning of the labour market and labour productivity can contribute to maintaining favourable employment conditions and support the long-term growth potential of the Cyprus economy,” he concluded.

Paphos increased its share of Cyprus’ off-plan housing market in the third quarter of 2026, while Limassol strengthened its position by transaction value, as recorded sales of apartments and houses under construction or at the planning stage rose sharply, according to a report by Landbank Analytics.

The analysis covered 1,956 recorded sale agreements worth €606.4 million between July and September, with Paphos increasing its share of transactions from 12.8 per cent in the second quarter to 17 per cent, while Limassol’s share of total transaction value climbed to 40.5 per cent.

“The more revealing story lies in how that activity was redistributed,” said Andreas Christophorides, founder and chief executive of Landbank Group.

“Limassol strengthened its share of total transaction value, Paphos gained ground by number of sales, while Nicosia continued to play an important role in new developments despite its lower relative share,” he added.

The figures show a market expanding in recorded activity but shifting between districts and price categories, with almost two-thirds of sales involving properties priced below €300,000.

“At the same time, nearly two in three sales were for properties priced below €300,000. The implication for developers is clear. Selecting the right location, product type and price point is critical to the absorption of a project,” Christophorides said.

“There is no single, uniform market, and it cannot be assessed through average prices or aggregate sales alone,” he added.

Paphos’ share of total transaction value also increased, from 21.2 per cent in the second quarter to 22 per cent in the third, while the district recorded 96 sales in Paphos city, up from 79 in the previous quarter.

Those transactions had a median value of €316,250 and an average of €407,912, with recorded prices ranging from €65,000 to €3.567 million.

Limassol, meanwhile, recorded 599 sale agreements worth €245.3 million, accounting for 30.6 per cent of all transactions, compared with 26.3 per cent in the second quarter.

Its share of total transaction value rose by 8.1 percentage points, from 32.4 per cent to 40.5 per cent, underlining the district’s growing weight in the market by value.

The increase came alongside a rise in recorded activity across several Limassol-area localities, particularly Germasogeia, where transactions rose by 69.8 per cent, and Limassol city, where sales increased by 47.3 per cent.

In Germasogeia, 73 agreements worth €44.8 million were recorded, compared with 43 in the previous quarter.

The locality’s median transaction value was €383,762 and its average was €613,991, with prices ranging from €95,000 to €5.092 million.

Agios Tychonas also featured prominently in the higher-value segment, recording 16 sales worth a combined €18.1 million.

Prices ranged from €125,000 to €5.8 million, with a median value of €647,123 and an average of €1.13 million.

“Robust analysis must bring together volume, median value, the range of prices and the characteristics of the properties sold,” Christophorides said.

“That is the basis for better development and investment decisions,” he added.

The report cautioned that high average values in premium localities can be influenced by a small number of expensive transactions and should be assessed alongside median prices and the full range of sales.

Recorded sales rise by almost half

Across Cyprus, the number of recorded agreements rose from 1,317 in the second quarter to 1,956 in the third, an increase of 48.5 per cent.

Their combined value increased by 51.6 per cent, from €400.1 million to €606.4 million.

However, the periods covered were not identical. The second-quarter dataset ran until June 29, while the third-quarter figures extended to September 30, meaning the changes reflect recorded activity and should not automatically be interpreted as equivalent increases in underlying demand.

The average value per agreement rose by 2 per cent, from €303,808 to €310,019. For apartments, the average transaction value was €269,217 and the median €214,500.

For houses, meanwhile, the average was €478,138 and the median €380,000, the analysis showed.

Landbank Analytics stressed that these figures reflect the mix of properties sold and do not constitute a like-for-like property price index.

Most sales remain below €300,000

Properties priced below €300,000 accounted for 1,267 transactions in the third quarter, representing 64.8 per cent of all recorded sales.

Their share was down from 68.1 per cent in the second quarter, a decline of 3.3 percentage points, although lower and mid-priced properties continued to account for nearly two in every three transactions.

The largest individual price bracket was €200,000 to €299,999, with 545 sales, or 27.9 per cent of the total. This compared with 372 sales and a 28.2 per cent share in the previous quarter.

The €300,000 to €499,999 category recorded 521 sales, representing 26.6 per cent of the market, up from 304 transactions and a 23.1 per cent share in the second quarter.

Properties priced between €150,000 and €199,999 accounted for 418 sales, or 21.4 per cent, compared with 327 sales and 24.8 per cent previously.

At the lower end, properties costing less than €150,000 recorded 304 sales, representing 15.5 per cent of transactions, up from 198 sales and 15 per cent in the second quarter.

The €500,000 to €749,999 bracket increased from 66 to 94 sales, although its market share edged down from 5 per cent to 4.8 per cent.

Properties priced between €750,000 and €999,999 recorded 26 sales, compared with 17 previously, maintaining a 1.3 per cent share in both quarters.

The market segment priced at €1 million and above recorded 48 sales, up from 33, with its share remaining unchanged at 2.5 per cent.

The report said these changes reflect the distribution of transactions across price brackets and do not necessarily indicate movements in underlying property prices. The figures are relevant to developers’ decisions on the type of homes to build and how to price them.

Limassol and Larnaca lead local markets

Limassol city remained the busiest individual locality, with 190 sales, up from 129 in the second quarter, a 47.3 per cent increase.

The median transaction value was €292,500 and the average €357,042, with recorded prices ranging from €95,000 to €4.1 million.

Larnaca city recorded the strongest growth among the leading local markets, with sales rising by 74.6 per cent, from 71 to 124. Its median transaction value was €205,000 and its average €237,843.

Lakatamia ranked third with 111 transactions, up 20.7 per cent from 92, with a median value of €190,000 and an average of €198,706.

Aradippou was fourth with 109 sales, down 10.7 per cent from 122. Its median transaction value was €185,000 and its average €204,594.

Paphos city ranked fifth with 96 sales, up 21.5 per cent from 79, followed by Strovolos with 90, up 26.8 per cent from 71.

Livadia recorded 79 transactions, compared with 67 in the previous quarter, while Germasogeia ranked eighth with 73, up from 43.

Strovolos recorded a median transaction value of €185,000 and an average of €206,700, while Livadia’s median was €220,000 and its average €241,250.

The report said transaction totals alone do not fully describe local property markets, as median values and the types of homes sold are also important.

District market shares shift

Nicosia’s share of recorded transactions fell from 34.5 per cent in the second quarter to 25 per cent in the third, although it still recorded 489 sales. Its share of total transaction value declined from 26.2 per cent to 16.2 per cent.

Larnaca’s share of transactions remained broadly stable, edging up from 23.8 per cent to 24 per cent, while its share of total value increased from 16.6 per cent to 17.7 per cent.

Famagusta’s share of transactions rose from 2.6 per cent to 3.4 per cent, while its share of total value remained unchanged at 3.6 per cent.

Paphos and Limassol were the two districts that recorded the clearest gains in market share, although the scale of their increases differed between transaction numbers and total value.

Landbank Analytics said comparisons between quarters should distinguish changes in market share from changes in absolute transaction volumes, while rankings among premium localities can shift substantially according to the mix of properties sold.

Cyprus had 17.1 per cent of its population at risk of poverty or social exclusion in 2025, below the European Union average of 20.9 per cent, according to figures published by Eurostat.

The data showed that 92.7 million people across the EU were at risk of poverty or social exclusion, equivalent to just over one in five residents.

Cyprus is counted as a single statistical region because of its size, while other EU member states are divided into multiple regions for the purposes of the comparison.

The figures therefore place Cyprus below the bloc-wide average, although they do not reveal differences in poverty and social exclusion between individual districts or communities on the island.

Across the EU, the proportion of people facing these risks varied considerably between regions, with the highest shares concentrated mainly in southern, eastern and outermost parts of the bloc.

In 24 of the 243 EU regions for which data were available, at least 31.5 per cent of the population was at risk of poverty or social exclusion.

These regions were located in Spain, Bulgaria, Greece, Italy, France and Romania, alongside two predominantly urban regions in western Europe, the Belgian capital region of Brussels and Bremen in north-western Germany.

Five regions recorded rates more than twice the EU average, with the highest found in French Guiana, a French outermost region, where 54.8 per cent of the population was at risk.

Southern Italy also recorded particularly high levels, with Calabria reaching 45.3 per cent and neighbouring Sicily 44 per cent.

The other regions among the five highest were the Spanish autonomous city of Melilla, where the rate stood at 43.7 per cent, and the French outermost region of Réunion, at 42.3 per cent.

At the opposite end of the scale, 24 regions recorded rates below 13 per cent in 2025.

These included five capital regions in eastern EU countries, namely Bratislava in Slovakia, Warsaw in Poland, Prague in the Czech Republic, Budapest in Hungary and Zagreb in Croatia.

Six regions in northern Italy, four additional regions in the Czech Republic, four in northern Belgium, two each in Hungary and Poland, and one in Austria also fell below the 13 per cent threshold.

The findings highlight the substantial regional differences in poverty and social exclusion across the EU, with Cyprus’ rate of 17.1 per cent below the European average but above the levels recorded in the bloc’s lowest-risk regions.

Foreign workers more likely to be in Cyprus’ lowest and highest pay brackets

The median gross monthly earnings of employees in Cyprus rose by 3.8 per cent to €1,953 in 2025, according to the Cyprus Statistical Service (Cystat), while the average gross monthly earnings increased to €2,591, highlighting the substantial difference between what the typical employee earns and the overall mean.

The median earnings increased from €1,881 in 2024, while average gross monthly earnings rose by 4.3 per cent, from €2,483.

The median is generally a more representative measure of what employees earn because it identifies the midpoint of the earnings distribution, meaning half of employees earn less and half earn more.

The average salary, by contrast, is calculated by adding all employees’ earnings and dividing the total by the number of employees. It can be pulled upwards by a relatively small number of people receiving very high salaries, making it less representative of the typical worker’s salary.

The €638 gap between the average and median monthly earnings in 2025 illustrates this difference, with the average salary standing around 33 per cent above the median salary.

The distribution of employees by earnings bracket showed that the largest group, accounting for 13 per cent of the workforce, earned a gross salary between €1,000 and €1,249 per month.

This was followed by employees earning a gross monthly salary between €1,500 and €1,749, who accounted for 11.4 per cent, and those in the €1,250 to €1,499 earnings bracket, representing 11.2 per cent.

Taken together, the figures show that 24.2 per cent of employees earn less than €1,500 a month, including 13 per cent who earn between €1,000 and €1,249 and 11.2 per cent whose monthly earnings range from €1,250 to €1,499.

The figures also showed differences between male and female salaries across income brackets.

Women accounted for a proportion of employees in the €1,000 to €1,249 earnings group that was 3.3 percentage points higher than the corresponding share for men, while the difference in the €1,250 to €1,499 salary bracket was 3.5 percentage points.

At the highest earnings level, however, men accounted for a proportion of employees earning a salary of €6,000 or more per month that was 3.1 percentage points higher than the share for women.

Earnings highest in finance, lowest in agriculture

Average gross monthly earnings varied considerably across economic sectors in 2025, ranging from an average salary of €956 in agriculture, forestry and fishing to €5,038 in financial and insurance activities.

All economic activity sectors recorded increases compared with 2024.

The largest annual rise was in mining and quarrying, where average earnings increased by 10.3 per cent. Cystat cautioned that this sector employs relatively few people, making statistical estimates more sensitive to changes in individual employees’ earnings.

Information and communication followed, with average earnings increasing by 7.7 per cent, while financial and insurance activities recorded a 7 per cent rise in sectoral salaries.

The data also present earnings for all state employees as a subcategory of public administration and defence, and compulsory social security.

Cypriot employees earn more than non-Cypriots at the median

The figures showed differences in employee earnings between Cypriot and non-Cypriot employees, with the median salary providing a particularly clear illustration of the gap.

Cypriot employees had median gross monthly earnings of €2,145 in 2025, compared with €1,597 for non-Cypriot employees.

The median salary for Cypriot employees rose by 4.5 per cent compared with 2024, while the figure for non-Cypriot employees increased by 3.4 per cent.

Average gross monthly earnings for Cypriot employees stood at €2,625, up 4.7 per cent year-on-year.

For non-Cypriot employees, the average monthly salary reached €2,524, representing an annual increase of 3.7 per cent.

The average salary figures therefore show a narrower gap between the two groups than the median salary figures, underlining how differences in the distribution of earnings can affect the overall picture.

Cystat’s breakdown by earnings bracket also showed that non-Cypriot employees accounted for higher proportions than Cypriot employees at both ends of the distribution, among those earning a low-income salary of less than €1,500 per month and those receiving a high-earner salary of €6,000 or more.

Wide differences within economic sectors

The sectoral figures further highlighted differences between Cypriot and non-Cypriot employee salaries.

Among Cypriot employees, average gross monthly earnings ranged from €1,744 in agriculture, forestry and fishing to €4,383 in financial and insurance activities.

For non-Cypriot employees, the salary range was wider, stretching from €664 in agriculture, forestry and fishing to €6,649 in financial and insurance activities.

The figures show that salaries varied not only according to citizenship but also substantially according to the job sector in which employees worked.

They also underline why average earnings should be considered alongside median salary figures and the distribution of employees across income brackets when assessing overall pay levels across Cyprus.

Cyprus’ banking sector non-performing loan (NPL) ratio fell to 1.5 per cent at the end of July 2026, down from 1.6 per cent a month earlier, according to updated figures published by the Central Bank of Cyprus (CBC) on Monday.

The data, which refer to July 31, show that the proportion of non-performing loans declined despite a slight reduction in the sector’s coverage of these loans through provisions.

The NPL coverage ratio fell to 64.5 per cent at the end of July, compared with 64.9 per cent at the end of June.

The CBC’s figures use the methodology applied in the European Banking Authority’s (EBA) risk dashboard, which includes loans and advances to central banks and credit institutions in the calculation of the banking sector’s NPL ratio.

Meanwhile, total restructured loans stood at €700 million at the end of July.

Of this amount, €300 million continued to be classified as non-performing loans, the CBC said.

Cyprus recorded an estimated €4.03 million in fishery product landings in 2025, according to figures published by Eurostat on Monday.

The figure came as the total value of fishery products landed across the European Union reached €5.5 billion, remaining at a similar level to the previous year.

The EU fishing fleet’s total catch was estimated at 3.3m tonnes in 2025 across the seven marine regions covered by European statistics.

Spain recorded the highest value of landings, accounting for 31 per cent of the EU total, followed by France with 18 per cent and Italy with 12 per cent.

In terms of landed weight, Spain accounted for 21 per cent of the EU catch, followed by Denmark with 16 per cent and France with 14 per cent.

Across the bloc, the Northeast Atlantic accounted for 72 per cent of all fishery products landed in 2025.

The main species caught in the region were herring at 18 per cent of the total, blue whiting at 17 per cent, sprat at 15 per cent and mackerel at 9 per cent.

The Mediterranean and Black Sea ranked second, accounting for 8 per cent of the EU’s total catch.

Sardines represented 19 per cent of the catch in this region, while anchovies accounted for 16 per cent.

The Western Indian Ocean contributed a further 7 per cent of the EU total, with skipjack tuna accounting for 58 per cent of the regional catch, yellowfin tuna for 29 per cent and bigeye tuna for 7 per cent.

The Eastern Central Atlantic and Southwest Atlantic each accounted for 5 per cent of the overall EU catch.

In the Eastern Central Atlantic, horse mackerel represented 38 per cent of the catch, followed by skipjack tuna at 13 per cent, yellowfin tuna at 12 per cent and mackerel at 9 per cent.

The Southwest Atlantic catch consisted mainly of hake, which accounted for 79 per cent, while squid represented 13 per cent.

The remaining 2 per cent of the EU’s total catch came from the Northwest and Southeast Atlantic regions.