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Spain Moves Closer To Shorter Working Week, But Challenges Lie Ahead

Spain is on the brink of reducing its working week, following a historic agreement between the government and the country’s two largest unions. This deal aims to cut the maximum work hours per week from 40 to 37.5, without altering wages. While the government has given its support, the proposal still faces challenges in the fragmented parliament, with opposition from employers.

Labor Minister Yolanda Díaz, alongside leaders of the UGT and CCOO unions, has hailed the agreement as a major step forward. The change is set to impact around 12 million workers and is expected to contribute to a reduction in carbon emissions. Under the new arrangement, the weekly hours will be calculated based on an annual average, with any extra hours worked considered overtime.

Additionally, the government plans to strengthen timekeeping enforcement, introducing fines of up to €10,000 per worker for companies that fail to comply. However, there are indications that full implementation might be delayed until 2026 to accommodate small businesses and secure broader parliamentary support.

The proposal still faces uncertainty in the lower house of parliament. The minority government relies on smaller parties, including the Catalan separatist party Hunt, which may be difficult to convince due to its pro-business stance.

In a statement, Díaz, who is also Spain’s Deputy Prime Minister and leader of the left-wing Sumar party, emphasized the significance of the measure: “Today we are repaying our debt to the working people of Spain, to the new generations who understand that personal time is not a luxury, but a fundamental right.”

However, the reduction in working hours has been met with resistance from Spain’s main employers’ association, CEOE. They argue that such a change should be negotiated on an individual company basis rather than mandated by law, allowing businesses to adapt based on their specific needs.

Cyprus Residential Market Surpasses €2.5 Billion In 2025 With Apartments Leading the Way

Market Overview

In 2025, Cyprus’ newly built residential property market achieved a remarkable milestone, exceeding €2.5 billion. Data from Landbank Analytics indicates robust activity countrywide, with newly filed contracts reaching 7,819, including off-plan developments. This solid performance underscores the market’s resilience and dynamism across all districts.

Transaction Breakdown

The apartment sector clearly dominated the market, constituting 81.6% of transactions with 6,382 deals valued at €1.77 billion. In contrast, house sales represented a smaller segment, encompassing 1,437 transactions and generating €737.9 million. The record-high transaction was noted in Limassol, where an apartment sold for approximately €15.2 million, while the priciest house fetched roughly €6.2 million.

Regional Analysis

Nicosia: The capital recorded steady domestic demand with 2,171 new residential transactions. Apartments accounted for 1,836 deals generating €349.6 million, compared to 335 house transactions worth €105.5 million, anchoring Nicosia as a core market with average values of €190,000 for apartments and €315,000 for houses.

Limassol: As the island’s principal investment center, Limassol led overall activity with 2,207 transactions. Apartments dominated with 1,936 sales generating €824.1 million, while 271 house transactions added €157.9 million. The district enjoyed premium pricing, with apartments averaging over €425,000 and houses around €583,000.

Larnaca: This district maintained robust activity with a total of 2,020 transactions. The apartment segment realized 1,770 transactions worth €353 million, and houses contributed 250 deals valued at €96.3 million. Average prices hovered near €200,000 for apartments and €385,000 for houses, positioning Larnaca within the mid-market bracket.

Paphos: With a more balanced mix, Paphos completed 1,078 transactions. Ranking second in overall value at €503.2 million, the district saw house sales generate €287.8 million and apartments €215.4 million. Consequently, Paphos achieved the highest average house price at approximately €710,000 and an apartment average of €320,000, emphasizing its premium housing profile.

Famagusta: Distinguished by lower transaction volumes, Famagusta was the sole district where house sales outnumbered apartment deals. Out of 343 transactions, 176 involved houses (yielding €90.4 million) and 167 were apartments (at €32.4 million). The segment’s average prices were about €194,000 for apartments and over €513,000 for houses, signaling its focus on holiday residences and coastal developments.

Sector Insights and Forward View

Commenting on the report, Landbank Group CEO Andreas Christophorides remarked that the analysis demonstrates an ecosystem where apartments are the cornerstone of the real estate market. He emphasized, “The apartment sector is not merely a trend; it is the engine powering the country’s real estate market.” Christophorides also highlighted the diverse regional dynamics: Limassol leads in apartment pricing, Paphos commands premium house prices, Nicosia remains pivotal to domestic demand, Larnaca sustains competitive activity, and Famagusta caters to holiday home buyers.

In a market characterized by these varied profiles, informed monitoring of regional and sector-specific dynamics is crucial for investors aiming to make targeted and strategic decisions.

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