A Softer Quarter Exposes The Limits Of Luxury’s Recovery

LVMH, the world’s largest luxury group and parent of Louis Vuitton, Dior, Celine and Hennessy, reported revenue of €18.5 billion in the three months to the end of September, underscoring both the scale of its business and the pressure building across parts of the luxury market.

The company’s revenue rose 1.2% year on year in the third quarter, following a 0.1% increase in the second quarter and a 5.9% decline in the first. The trajectory points to stabilization, but not yet to a convincing rebound.

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Organic Growth Misses Expectations

Organic sales growth, which strips out currency effects and portfolio changes, slowed to 1% in the third quarter from 3% in the previous quarter. That result fell short of market expectations and reinforced concerns that the luxury cycle remains uneven.

For the first nine months of the year, LVMH generated sales of €57.1 billion, with organic growth of 2%.

In its statement, the company highlighted the breadth of its portfolio, saying that diversification continues to provide resilience in an uncertain geopolitical and economic environment. That remains one of LVMH’s defining strengths: when one category weakens, another can help offset the downturn.

China Remains The Key Pressure Point

LVMH said sales performed well in the United States, Europe and Japan, but conditions in China remained less favorable. That matters because the country has long been one of the most important growth engines for global luxury brands.

The fashion and leather goods division, LVMH’s most closely watched unit, saw organic sales fall 5% as weaker demand in China weighed on performance. Deutsche Bank said the decline was steeper than the roughly 2% drop expected by analysts.

The segment had delivered its first organic sales gain in two years in the previous quarter, making the latest retreat a notable setback.

Brand Equity Faces A Test In China

The quarter also highlighted the reputational risks facing global brands in China. Louis Vuitton drew criticism after suing local tea company Molly Tea over logo copying. Although the company won the case, the dispute sparked social media backlash and boycott calls, adding another layer of pressure to an already fragile environment.

For a company built on scarcity, aspiration and brand discipline, perception is an asset as valuable as inventory. In a market as digitally connected as China, that asset can shift quickly.

Mixed Performance Across The Portfolio

Not every division weakened. LVMH’s selective retailing business, which includes Sephora, posted an 8% organic sales increase. Watches and jewellery, along with wines and spirits, both recorded 6% organic gains.

That broad mix is precisely what has historically given LVMH an advantage over rivals: it can absorb softness in one category without relying on a single growth driver.

Analysts See A Longer Recovery Ahead

Deutsche Bank analysts said the results could lead to further cuts in earnings forecasts for the second half of 2026 and 2027. They added that it is difficult to see what could improve investor sentiment in the near term.

Still, the bank framed the weakness as cyclical rather than structural. In its view, recovery is taking longer because Chinese demand remains subdued, but the problem does not appear to reflect a permanent deterioration in the brand franchise. Analysts said ongoing brand initiatives are beginning to show results, though improvements are likely to remain gradual.

Investor Pressure Continues To Mount

LVMH’s share price has fallen nearly 40% since the start of the year. In September, L’Oréal overtook the group as France’s most valuable listed company, a symbolic shift that captures how sharply sentiment has changed.

Shares in LVMH were down more than 1.6% in Paris around 10 a.m. CEST following the release.

Kraken, through its parent company Payward, has awarded six postgraduate scholarships at the University of Cyprus, strengthening its ties with the island’s academic sector and supporting the development of future professionals in finance and data science.

Scholarships Support Future Finance And Data Science Professionals

Announced at a ceremony in Nicosia on Monday, October 12, the scholarships will support students during the 2026–2027 academic year. Three recipients are enrolled in the MSc Finance programme, while three are pursuing an MSc in Data Science.

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The initiative forms part of a broader partnership between Payward and the University of Cyprus Faculty of Economics and Management. Recipients were selected through established university procedures, based on academic merit and financial need. Awards will contribute towards tuition fees, although individual amounts were not disclosed.

Partnership Highlights Cyprus’ Financial And Academic Strengths

Alexia Theodorou, European Head of Derivatives and CEO of Kraken Cyprus, said the scholarships reflect the company’s confidence in Cyprus’ universities and their contribution to the financial services sector.

“Cyprus is one of our two hubs in Europe, and the quality of its universities is part of the reason,” Theodorou said. “These scholarships put our support directly behind six students whose work will shape how finance operates here and across the continent.”

University of Cyprus rector Tasos Christofides emphasised the importance of collaboration between universities and businesses in preparing graduates for a changing economy.

“At the University of Cyprus, we believe that investing in talented young people is an investment in the future,” he said.

Christofides added that higher education should go beyond formal qualifications by developing critical thinking and practical skills. In his view, private-sector partnerships can create opportunities for students while strengthening universities’ connections with the wider economy.

Financial Literacy And Digital Skills In Focus

Deputy Minister to the President Irene Piki also attended the ceremony, linking the initiative to Cyprus’ efforts to strengthen digital skills, financial literacy and economic competitiveness.

Addressing the scholarship recipients, Piki said their achievements demonstrated the dedication and capabilities needed as the economy becomes increasingly reliant on technology and specialised knowledge.

She also highlighted the risks associated with increasingly complex financial products and digital services.

“In this environment, knowledge is protection,” Piki said, adding that “financial literacy enables citizens to make informed decisions, manage risk, avoid costly mistakes and build long-term financial resilience.”

Piki called for closer cooperation between government, universities, regulators and businesses to improve financial education as technology reshapes the skills expected of graduates.

Industry And Academia Discuss Financial Innovation

A panel discussion titled “Financial Innovation and Digital Education” formed part of the ceremony. Participants included Chief Scientist for Research, Innovation and Technology Demetris Skourides, Kraken executive Stavros Vassiliades, financial expert Tassos Yiasemides and Demetris Sparsis.

The discussion explored the relationship between digital finance, technological development and financial education, focusing on ways to make financial services safer and more accessible.

Participants also stressed that the expansion of digital financial tools must be accompanied by practical financial knowledge, enabling people to make informed long-term decisions, including when planning for retirement.

During the event, the university also acknowledged former University Council chairman Tasos S. Anastasiou, under whose leadership the scholarship initiative was developed.

Kraken Strengthens Its Cyprus Presence

The scholarships come as Kraken continues to develop its operations in Cyprus, one of Payward’s two strategic European hubs.

Its Cyprus entity, Payward Europe Digital Solutions (CY) Limited, is authorised as an investment firm by the Cyprus Securities and Exchange Commission (CySEC) under licence number 342/17. Its activities include regulated financial instruments and derivatives.

Cyprus also plays a central role in Kraken’s European derivatives business. Kraken executive Stavros Vassiliades has previously highlighted the importance of the island’s operations, while the group’s Irish-regulated entities support crypto-asset services under the European Union’s Markets in Crypto-Assets Regulation (MiCA).

Vassiliades has also pointed to Cyprus’ talent pool in compliance, risk management, anti-money laundering and financial technology as a factor attracting international financial services firms.

Against this backdrop, the six scholarships represent both educational support and an investment in the talent pipeline for a financial sector increasingly shaped by technology.

Cyprus startups have already raised €112.8 million across 28 funding rounds in 2026, putting the island’s venture market within reach of its full-year total for 2025 with three months still left on the calendar.

A Market Gaining Depth, Not Just Volume

The latest analysis, compiled by Dionysis Partsinevelos, an associate at venture capital firm 33East and an analyst at G4 Ventures, shows that Cyprus continues to build momentum as a regional startup hub.

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In an update published Tuesday on his Substack newsletter, Partsinevelos said 21 additional rounds had been announced in the five months since his previous review in May. Seventeen of those disclosed their size, collectively adding €100 million to the year’s tally.

By Partsinevelos’s methodology, which counts deals by announcement date, uses each company’s reported currency and converts figures at a year-to-date average exchange rate of roughly $1.16 per euro, 2026 funding now stands at $131.9 million. The median investment is $1 million. For comparison, Cyprus startups raised about €120 million in 2025.

Omilia Leads The Year’s Largest Round

The biggest funding event of 2026 so far belongs to Omilia, which raised $67 million, or €57.8 million, in a Series B announced on August 6 and led by Expedition Growth Capital.

The company develops artificial intelligence voice agents for enterprise contact centres and is now headquartered in Larnaca, after originally being founded in Athens by Dimitris Vassos. Its first external backing came in 2020, when Grafton Capital invested $20 million. The latest transaction ranks as the fourth-largest Cyprus-based startup round in Partsinevelos’s records, which date back to 2020.

Two crowdfunding campaigns run through Crowdbase also exceeded expectations, raising a combined €835,706 from 213 investors.

Retail Investors Join Early-Stage Bets

Nicosia-based AI recruitment platform Cleedee raised €300,000 from 117 investors at a pre-money valuation of around €1.7 million, closing its campaign on May 31. Founded by Michalis Georgiou and Stavros Kasinos, the company has also received support from the Research and Innovation Foundation’s SEED call and joined the first Plug and Play Cyprus cohort.

Student housing platform MyStudentFlat raised €535,706 from 96 investors between May and July, surpassing its €500,000 target at a pre-money valuation of €1.8 million. Founded by Demetris Economou and Elena Orfanidou, it leases verified flats from landlords and sublets them to students.

Venture Capital Continues To Back Scale-Up Ambitions

Several other startups secured institutional backing. AI game-development tools company Code Maestro raised $720,000, or €620,000, in a summer seed round involving Davidovs Venture Capital, Mount Venture Capital Fund, 33East and angel investors.

Founded by Alexander Goldybin and Max Slobodyanyuk, the company first built an AI copilot for Unity before shifting focus to a Playable Ads Creator that turns screenshots or briefs into playable advertisements designed to meet network requirements.

Piney, which provides short- and medium-term rental operations software and services, raised €1.6 million in September in a round led by existing investor Uni.fund, with 33East participating. The deal lifted its total funding to €2.8 million.

Founded by Cypriot entrepreneur Nicolas Chrysostomou, Piney supplies cleaning, laundry, linen and amenities through its platform and in-house teams, and operates in the United States with a Cypriot team.

Robotics testing company Positronic Robotics raised $2 million, or €1.72 million, in September in a pre-seed round led by 33East, with RTP Global, Davidovs Venture Collective, Orion VC and angel investors also participating.

Founded by Sergey Arkhangelskiy, who is based in Paphos, the company tests robotics models on physical robot rigs in Cyprus and delivers video recordings and test scores on the same day.

Funding Spans More Sectors Than Ever

Other announced deals included Limassol-based travel eSIM app eSIMo, which raised $10 million in January from an unnamed UK investment fund, and Neofleet Capital, which secured $4 million in a pre-seed round combining equity and debt, announced on October 8.

Neofleet Capital finances taxi and ride-hailing fleets in Senegal, Côte d’Ivoire and Peru. DMTech VC participated in the round, and some members of the team previously worked at inDrive.

Limassol-based AI mental wellness app SOULA raised $750,000 in February, following founder Natallia Miranchuk’s €500,000 investment win on Shark Tank Malta in 2024 and support from the Research and Innovation Foundation’s DISRUPT programme.

Paphos-based telecoms operator Intergo Telecom raised €600,000 in an angel round in April, having operated since 2016 under founder and chief executive Marios Italos.

Restaurant payment startup DigitalFox raised €350,000 in a pre-seed round earlier in the year and joined the first Plug and Play Cyprus cohort. Founded by Bane Patchev, the company integrates QR-code table payments with restaurant point-of-sale systems.

AI companion startup Nooah secured $100,000 in May. Its assistant uses long-term memory through Telegram and WhatsApp and delivers daily morning briefings. Co-founder and chief executive Andrey Belozerov is based in Cyprus.

Cyprus gaming studio F*Bastards secured a seven-figure investment in June to expand its portfolio of more than 50 slot and casino games, with Laedan Bridge advising on the transaction.

Nicosia-based defence technology company Fractal Networx received an undisclosed strategic investment in August from Greek dual-use technology group EFA Group. Its products include ORION CX, a command-and-control system, and ALECTO EW, a modular counter-drone and electronic warfare system, both already in operational use.

Larnaca-based G6X7 also announced a reported $20 million private investment in September from unnamed investors in Japan and the United Arab Emirates, although Partsinevelos cautioned that the round was not fully verified. The company describes itself as a contemporary art and visual technology platform producing limited-edition works from layered aluminium and acrylic, with photography positioned between the layers.

Signals Of A Broader Shift

Partsinevelos also identified several additional funding developments outside his main list, including two undisclosed Series A extensions for Limassol-based education technology company Headway from Endeavor Catalyst in January and Horizon Capital in April.

Other deals included Limassol-based self-improvement microlearning startup RiseGuide, which raised a $2 million Series A in January according to VCBacked, and Integral AI, which secured a €250,000 seed round for machine-learning technology focused on mobile performance marketing.

Nicosia-based mobile puzzle game developer Burny Games also brought in Maksym Krippa, owner of NAVI, as a co-owner in March, though the size of his stake was not disclosed.

Despite the strong year-to-date figures, Partsinevelos warned that the three largest rounds account for roughly 75 per cent of total funding, limiting the extent to which the headline number reflects broad-based investment activity.

Still, he said the 28 rounds recorded so far, including undisclosed deals, point to a wider set of companies reaching investors—and a maturing ecosystem that is beginning to attract more attention beyond its most obvious names.

“Investors are starting to realise that the island can now produce and export technology and not just import it,” he said.

With three months remaining in the year and additional deals likely still to be announced, Partsinevelos expects Cyprus startups to finish 2026 with another record-breaking result.

Meta has introduced two new AI models, Muse Wonder and Muse Wonder Full, signalling a more ambitious move into frontier AI. The releases build on Muse Spark but target more demanding tasks, including coding, while placing greater emphasis on long-term memory and personalised assistance.

Larger Models Target More Demanding Tasks

Unlike Muse Spark, which was designed for low latency and lightweight use, Muse Wonder and Wonder Full are significantly larger and, according to Meta, more capable. The company reports stronger benchmark performance and improvements on demanding workloads, including coding.

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According to Meta’s model card, both models achieved benchmark results comparable to Fable 5.1 and GPT-6 Astra in the company’s internal testing. Meta described the release as “the next step on our scaling ladder and a major leap toward personal superintelligence” in its announcement.

Pricing Reflects Meta’s Frontier Ambitions

The models’ pricing places them in the premium AI segment. Through the Meta Model API, Muse Wonder will cost $4 per million input tokens and $20 per million output tokens, putting it in a similar pricing tier to GPT-6 Sol and Opus 5.5.

Muse Wonder Full, by contrast, will not be offered through the API. Meta says it will be exclusive to Muse Code subscribers, tying access to its most advanced model to a premium product. Both models will also power the Muse agent.

Long-Term Memory Takes Centre Stage

Meta is increasingly positioning its AI strategy around assistants that can support users over time rather than respond only to individual prompts. A central part of that approach is what the company calls “active memory”: the ability to retain, organise and synthesise information provided by users across extended periods.

Meta points to the MemoryBench benchmark, which evaluates systems designed for continual learning and memory construction. The company says Muse Wonder now outperforms Fable, Opus and Astra on this measure.

“We put a tremendous amount of effort into making sure your model can remember what’s important to you over days, weeks, months, and beyond,” research scientist Kavya Kopparapu said in a launch video.

New Models Follow Meta’s AI Reorganisation

The launch is also significant within Meta’s broader AI strategy. It is the company’s first frontier-model release since Scale AI founder Alexandr Wang reorganised its AI operations in August 2025. Meta has since introduced Muse Spark and the Muse agent, while making fewer high-profile model announcements than competitors such as OpenAI and Anthropic.

The new models were trained at Meta’s Prometheus data centre in central Ohio, which came online earlier in 2026, according to the company. The facility highlights the growing importance of infrastructure in the race to develop advanced AI systems, where performance depends not only on algorithms and data but also on computing capacity, data-centre investment and access to capital.

As competition intensifies, Muse Wonder and Wonder Full represent a broader bet on larger models, persistent memory and premium AI products. Their longer-term significance will depend on how their reported capabilities translate into real-world performance and whether users find enough value to pay for access.

Cyprus launched its Competitive Electricity Market on 1 October 2025 after years of delays and structural distortions. The reform promised greater competition, more supplier choice and lower electricity costs. One year later, however, rising wholesale prices and limited alternatives for households raise questions about whether the market is delivering the expected benefits.

The market’s trading mechanisms are operating, with offers submitted, generation scheduled, settlements completed and prices published. Yet these are necessary steps, not proof that the reform has achieved its main objective. For households, the key question is whether they can choose a supplier on better terms and pay less. For the wider economy, the issue is whether the overall cost of electricity is falling.

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Wholesale Electricity Prices Rise 61%

Data from the Cyprus Grid platform show that the monthly weighted average day-ahead electricity price increased from €162.7/MWh in October 2025 to €224.6/MWh in April 2026 and €262.2/MWh in September 2026.

The difference between the first and last months of the market’s first year was €99.5/MWh, representing an increase of approximately 61%. The average across all 12 monthly prices was €203.85/MWh, around 25% above the October 2025 level.

The increase indicates that wholesale price trends have not matched expectations of cheaper electricity. However, it would be inaccurate to attribute the entire rise to market liberalisation. Fuel prices, emissions allowances, demand and power plant availability also influence wholesale prices. Moreover, wholesale prices do not translate automatically or uniformly into every household’s retail bill.

These distinctions matter when assessing the reform, but they do not remove the need to address the burden on consumers. The review must separately examine generation costs, trading mechanisms and the final prices paid by households. The market’s operation cannot substitute for measurable results.

Households Still Have Few Supplier Options

One year after the market opened, private suppliers have focused largely on large consumers, reportedly offering prices around 3–4% below those of the Electricity Authority of Cyprus (EAC). Households, meanwhile, still have little meaningful choice and continue to rely almost entirely on EAC.

The Cyprus Energy Regulatory Authority (CERA) should publish a transparent assessment covering five areas: how many households have switched suppliers; which residential products are available and on what terms; what savings, if any, consumers achieve compared with the previous system; the share of household consumption supplied by private providers; and the costs of market operation, balancing and ancillary services.

The rise in wholesale prices signals an unfavourable trend, but these additional figures are necessary to establish the extent of competition and its net effect on households. Consumers should be able to see what has changed and what they are paying for it.

A Trading Platform Cannot Replace Infrastructure

A trading market does not create new generation capacity, energy storage or electricity interconnections. It organises the sale of available electricity, but the physical characteristics of the power system continue to shape prices.

When demand requires expensive conventional generators to operate, their offers can determine the marginal market price. Concentrated generation and limited alternatives can also constrain effective competition. The central challenge is ensuring that the lower cost of some forms of generation translates into lower prices for consumers.

A high market price does not, by itself, prove abuse or market manipulation. CERA should systematically examine offers, substantiated costs and participant behaviour. The Transmission System Operator of Cyprus (TSOC) should provide the operational data needed for effective oversight within its responsibilities, while the government must address delays in infrastructure development and energy planning.

Five Measures To Improve Competition And Affordability

1. Publish A Quarterly Market Scorecard

CERA should issue a public quarterly report covering wholesale prices, balancing costs, market shares, supplier switching and actual consumer savings. Comparisons should use equivalent consumption profiles and contractual terms so that households can assess the benefits of switching on a like-for-like basis.

2. Consider A Temporary Wholesale Price Cap

Given limited competition and insufficient storage, Cyprus could consider a temporary wholesale price cap based on verified variable generation costs, subject to independent oversight and a predetermined review date.

Any withdrawal of the cap should be tied to measurable conditions, including more active suppliers, additional competitive generation, adequate storage and evidence that lower renewable generation costs are being passed on to consumers. Such a measure would serve only as a temporary bridge. The lasting objective must be a market with effective competition.

3. Use Contracts For Difference To Pass On Renewable Energy Benefits

For new renewable energy projects receiving public support, Cyprus should consider competitive tenders using two-way Contracts for Difference (CfDs), where permitted and required under the applicable framework.

Under this model, the producer receives a payment when the market price falls below an agreed strike price and returns the difference when the market price rises above it. The contract design should ensure that the resulting financial benefits reach consumers rather than remaining solely with producers.

4. Develop A Separate Framework For Energy Storage

Energy storage requires a support framework designed around its specific function, rather than the automatic application of renewable energy CfD arrangements. Batteries shift electricity from one period to another; they do not create an unlimited new source of generation.

Competitive tenders should therefore link compensation to clearly defined obligations covering capacity, discharge duration, availability and the provision of services to the electricity system.

For hybrid renewable energy and storage projects, contracts should specify when and how much electricity must be delivered, the required availability guarantees and the applicable prices. The aim should not simply be to subsidise battery installations, but to secure reliable capacity when the system needs it and ensure that the resulting benefits reach consumers.

5. Address Carbon Costs And Delays In Natural Gas Infrastructure

Delays in introducing natural gas into the electricity system prolong Cyprus’s dependence on liquid fuels. The government should account for these delays and explain how it intends to reduce the resulting exposure to costs that households cannot control.

Cyprus should also seek targeted, temporary relief from carbon costs within the debate on reforming the European Union Emissions Trading System (EU ETS). Any request should reflect the particular circumstances of the island’s isolated electricity system and be accompanied by a credible emissions-reduction plan.

This would be a proposal for transitional protection, not an established exemption or an abandonment of climate policy. Any relief should have a defined duration and be passed through to consumers’ electricity bills.

In parallel, the government should ask the EU to consider whether a specific derogation allowing zero value-added tax (VAT) on the portion of electricity bills attributable to carbon costs could be introduced. The legal feasibility and implementation of such a measure would need to be assessed; it should not be presented as an existing entitlement.

Authorities should also examine how carbon costs borne by conventional generators influence the market prices received by renewable energy producers and identify measures to correct distortions where justified.

Measure Success By The Bills Consumers Pay

One year is not enough for a market to reach full maturity, but it is enough to require public accountability and corrective action. Recognising the pressure on consumers should be the starting point for a solution, not a reason to postpone it.

The government should accelerate infrastructure development and pursue evidence-based transitional protection. CERA should measure competition, scrutinise pricing mechanisms and recommend practical adjustments. Every intervention should be assessed against a clear outcome: whether it reduces electricity bills without compromising security of supply.

Cyprus needs more than competition in market rules. It needs meaningful consumer choice and electricity that households and businesses can afford.

Cyprus must step up efforts to combat illegal gambling and strengthen player protection beyond basic regulatory compliance, according to Panayiotis Trisokkas, chairman of the National Betting Authority.

Speaking at the 9th Safer Gambling Conference on October 12, Trisokkas stressed that effective regulation, stronger prevention and better use of technology are essential to identifying risks before they lead to harm.

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Player Protection Is Key To A Sustainable Market

The conference brought together academics, researchers, regulators and gambling industry professionals from Cyprus and abroad to discuss illegal betting, artificial intelligence, public health concerns and the future of player protection.

“A well-regulated market is a prerequisite for a sustainable market. And a sustainable market is one in which player protection is an integral part of its operation,” Trisokkas said. He cautioned that compliance alone is insufficient, arguing that regulators must continually assess whether existing rules keep pace with market developments and emerging risks.

Technology And Prevention Shape Regulatory Priorities

Discussions also examined developments in European gambling regulation, including stronger player safeguards and growing recognition of gambling-related harm as a public health issue. Speakers explored the psychological and biological factors behind risk-taking, alongside the challenges authorities face in detecting and disrupting illegal gambling.

Artificial intelligence, data analysis and digital tools featured prominently in discussions about identifying problematic behaviour earlier and improving interventions. Trisokkas said these technologies could help the industry better understand player behaviour and strengthen protective measures.

Advertising And Accountability Under Scrutiny

Participants also addressed responsible advertising, the obligations of communications professionals and recent developments in Cyprus’s gambling sector.

Representing the Finance Ministry, Lucy Herodotou Mouskou, director of financial management of the central government, commended the authority’s work while stressing that industry growth must not come at the expense of consumer protection. She argued that economic performance alone should not determine the sector’s success, highlighting the importance of effective regulation, transparency and public safeguards.

Mouskou also conveyed a message from the finance minister emphasizing that economic prosperity must go hand in hand with protecting citizens. People who choose to gamble should do so responsibly and within safe limits, while the state has a duty to support those who exceed them.

Safer Gambling Week Launches Across Cyprus

The conference marked the start of Safer Gambling Week, running from October 12 to 18, with educational events, public awareness campaigns and interactive sessions planned throughout the week.

Under the slogan “Play within limits. Play safely,” this year’s campaign focuses on self-control, recognising harmful behaviour and making informed gambling decisions. It also aims to raise awareness among young people and vulnerable groups about betting risks and the tools available to reduce gambling-related harm.

The full programme is available at sgw.cy/en/program/, while further guidance on responsible gambling can be found at safergambling.gov.cy.

EU residents made 1.20 billion trips in 2025, an increase of 1.4% compared with the previous year. The rise represents approximately 17 million additional journeys, reflecting continued demand for both leisure and business travel.

Most Trips Take Place Within The EU

Domestic travel accounted for 848 million trips, representing 70% of the total. A further 264 million journeys, or 22%, were made to other EU member states.

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Overall, 92% of trips by EU residents remained within the bloc, while 8% were to destinations outside the EU. Fewer than half of those trips beyond the bloc took place outside Europe.

Romania And Spain Lead In Domestic Travel

Romania recorded the highest share of domestic trips at 89%, followed by Spain at 87%. Greece, France and Portugal each reported a domestic travel share of 85%.

Luxembourg had the lowest proportion of domestic trips at just 5%. Belgium followed at 29%, while Malta recorded 32%.

Travellers Spend More On Trips Abroad

Despite the greater number of domestic journeys, spending was higher on international travel. EU residents spent €379.4 billion on trips abroad, compared with €266.2 billion on domestic trips.

Accommodation accounted for €90.3 billion, or 34% of domestic travel expenditure, while transport costs totalled €56 billion, representing 21%.

For trips abroad, accommodation spending reached €131.3 billion, or 35% of the total, while transport expenditure amounted to €121.5 billion, accounting for 32%.

Beer deliveries in Cyprus fell by 1.2% year on year in September, as growth in domestic demand failed to offset a sharp decline in exports, according to the Cyprus Statistical Service (Cystat).

Domestic Market Remains Resilient

Total beer deliveries reached 4.32 million litres in September, down from 4.37 million litres a year earlier. Domestic deliveries increased by 2.4% to 4.29 million litres, compared with 4.19 million litres in September 2025, highlighting the importance of local consumption to the sector.

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Exports Drop Sharply

Exports fell by 84.4% year on year to 28,577 litres, from 183,503 litres in September 2025. The decline highlights the volatility of Cyprus’s beer exports, where relatively small volumes can lead to substantial percentage changes.

Deliveries Decline Month On Month

Compared with August 2026, total beer deliveries decreased by 2.2%, from 4.42 million litres. Domestic deliveries rose by 1.5% month on month to 4.29 million litres, up from 4.22 million litres, while exports dropped by 85.1% to 28,577 litres, compared with 192,313 litres in August.

Year-To-Date Deliveries Remain Below 2025 Levels

Between January and September 2026, total beer deliveries amounted to 33.60 million litres. Of this volume, 32.37 million litres went to the domestic market, while 1.23 million litres were exported.

Overall deliveries were approximately 2.3% lower than in the same period of 2025. Domestic deliveries remained broadly stable, declining by around 0.6% year on year, according to Cystat’s monthly percentage changes.

Rising property prices and rents are putting pressure on households in Larnaca, pushing demand into surrounding areas where costs are also climbing. Industry representatives warn that continued increases could create affordability challenges similar to those already seen in Limassol.

According to the Council of Registered Real Estate Agents, monthly rents range from €600 to €700 for one-bedroom apartments, €700 to €800 for two-bedroom units and €900 to €1,000 for three-bedroom properties.

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Council president Marinos Kynaguirou said prices in Larnaca had risen significantly and were approaching Nicosia levels. While the city market appears to be stabilising, prices continue to climb in the suburbs.

Suburban Prices Continue To Rise

Tersefanou, Alethriko, Pervolia and Kiti are among the areas recording further increases. In Livadia, property values have reportedly tripled in some cases in recent years, partly following the removal of oil tanks from the wider area, Kynaguirou said.

Although further rent increases are not expected immediately, renewals of older leases are likely to reflect current market rates.

Mackenzie Leads The Market

Mackenzie remains Larnaca’s most expensive residential area, with new properties averaging around €6,000 per square metre, compared with approximately €4,000 elsewhere in the municipality, according to Vassos Zacos, director of Fox’s Larnaca office. Limited availability also keeps prices high in the Saint Lazarus area and city centre.

Major planned investments in the former refinery area could create a new premium market. Zacos said indicative prices for some developments, particularly beachfront plots, start at €10,000 per square metre, although values have yet to be established across the area.

European Buyers Add To Demand

Israeli and Lebanese buyers remain prominent, but interest from Europeans, including French, Italians, Poles and Germans, is also increasing. Zacos said many see Larnaca as a place to live and develop their careers, with digital nomads among those attracted by the services available in Cyprus.

Construction Activity Accelerates

Building permits issued in the first eight months of 2026 increased by 53% year on year, while town-planning permits rose by 42%, according to the Larnaca District Self-Government Organisation.

Authorities issued 3,957 building permits and 2,502 town-planning permits between January and August, compared with 2,586 and 1,759, respectively, in the same period of 2025.

Authorities Seek Affordable Housing Solutions

Larnaca Mayor Andreas Vyras said the municipality was preparing projects to help residents facing housing difficulties, including affordable homes and student accommodation.

One proposal involves exchanging land with the Kiti Metropolitan area near the new GSZ stadium to develop affordable rental housing. The municipality has tasked the Cyprus Scientific and Technical Chamber (ETEK) with preparing the terms for an architectural competition, with the aim of securing EU funding in the next programming period.

Vyras said government support was essential, but a proposal to make public land available for housing had so far been rejected.

The Larnaca District Self-Government Organisation has also called for central government incentives, noting that district residents are among the lowest-paid nationwide. Following talks with the Cyprus Land Development Corporation, it is working to advance housing projects.

A recent interior minister’s decree on compensation generated by developments in Larnaca is expected to provide additional funding for the corporation. New projects are due to be presented jointly in November, with the aim of expanding affordable housing options for both buyers and renters.

Vehicle registrations in Cyprus climbed to 43,890 in the January-September 2026 period, marking a 9.1% increase year on year, according to the Statistical Service of Cyprus (Cystat). The data underline a market that remains on an upward trajectory, even as September itself posted a modest decline.

September Slips, But The Broader Trend Remains Positive

In September, total vehicle registrations fell 3.9% to 5,326, down from 5,544 in the same month a year earlier. Passenger saloon car registrations also eased, slipping 2.5% to 4,254 from 4,364.

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That monthly dip did little to alter the broader nine-month picture. Compared with the 40,212 registrations recorded in the same period of 2025, the market added 3,678 more vehicles this year.

Hybrids Strengthen Their Lead

The most striking shift in the market was the continued rise of hybrid vehicles. Their share of passenger saloon car registrations increased to 53%, up from 44% in the corresponding nine-month period of 2025, a gain of nine percentage points.

By contrast, petrol-powered saloon cars lost ground, falling to 34.8% from 42.8%. Diesel vehicles slipped to 8% from 8.5%, while electric vehicles edged down to 4.2% from 4.7%.

In total, passenger saloon car registrations rose 9% over the nine months to 34,156, compared with 31,325 a year earlier. Of these, 10,521 were new vehicles, representing 30.8% of the total, while 23,635 were used, accounting for 69.2%.

Rental Cars Move In The Opposite Direction

Not all segments shared in the growth. Registrations of rental cars declined sharply by 17.1% to 3,780 from 4,559 in the same period of 2025.

That divergence suggests a market still being shaped by changing consumer preferences, fleet decisions and broader cost considerations, with hybrids increasingly emerging as the default choice for many buyers.

Commercial Vehicles And Buses Post Gains

Bus registrations rose to 196 from 132 in the corresponding period last year, reflecting a notable increase in demand.

Commercial vehicle registrations also advanced, increasing 10.4% to 5,046 from 4,569. The breakdown shows:

• Light goods vehicles up 8.8% to 3,970 registrations
• Road tractors up 14.7% to 195
• Heavy goods vehicles up 16.3% to 621
• Rental goods vehicles up 20.9% to 260

Motorcycles Continue To Grow

Registrations of motorcycles above 50cc rose 8% to 3,802 from 3,522 a year earlier. In contrast, mopeds below 50cc fell to 109 from 170.

The latest figures point to a transportation market that is expanding overall, but also evolving rapidly. Hybrids have moved from a growing segment to a dominant one, while petrol and diesel continue to lose share as Cyprus’ vehicle fleet gradually shifts toward cleaner and more efficient alternatives.