Breaking news

Cyprus House Prices Outpace The EU As Market Momentum Builds In 2026

by THEFUTURE.TEAM

Cyprus’s housing market regained clear momentum in the second quarter of 2026, with house prices rising 7.9% year on year, according to Eurostat and the Cyprus Statistical Service (Cystat). The increase was well ahead of the European Union average and points to renewed strength in the island’s residential property market.

Cyprus Extends Its Lead Over The EU

The latest figures show Cyprus outperforming the broader market on both an annual and quarterly basis. House prices in Cyprus rose 2.4% between the first and second quarters of 2026, compared with gains of 1.2% across the EU and 1.1% in the euro area.

On an annual basis, Cyprus’s 7.9% increase stood above the EU’s 4.7% rise and the euro area’s 4.0% gain. The result places the island among the stronger performers in the bloc, even as price growth moderates in much of Europe.

House Prices Reach A New High

Cystat reported that Cyprus’s House Price Index reached 105.46 points in the second quarter, up from 102.95 in the first quarter and 97.74 a year earlier. The annual pace of growth also marked a sharp acceleration from 3.4% in the first quarter of 2026.

The trajectory has been steadily upward. Annual house price growth in Cyprus was 2.9% in the second quarter of 2025, then rose to 4.2% in the third quarter and 6.0% in the fourth. The second quarter of 2026 therefore represents a further strengthening in the market’s recovery.

New And Existing Homes Both Contribute

Growth was not limited to one segment of the market. Both new and existing dwellings posted gains in the latest quarter.

The sub-index for new dwellings rose to 105.73 points from 103.25 in the first quarter. New-home prices had already climbed from 96.26 in the second quarter of 2025 to 101.71 in the third quarter, 102.06 in the fourth, and 103.25 in the first quarter of 2026 before advancing further in the second quarter.

Existing dwellings also recorded a strong rebound. Their sub-index increased to 105.10 from 102.51 in the first quarter. That followed a more uneven pattern: the index declined from 100.84 in the second quarter of 2025 to 100.59 in the third and 99.82 in the fourth, before recovering to 102.51 in the first quarter of 2026 and then climbing again in the second.

Cystat’s House Price Index measures changes in average residential property prices for both new and existing dwellings, including the land component. The data are based on information from the Department of Lands and Surveys and cover areas under the control of the Republic of Cyprus.

European Growth Slows, But Remains Positive

Across the EU, house prices continued to rise, but the pace of annual growth eased slightly. EU-wide prices increased by 5.5% year on year in the third quarter of 2025, 5.4% in the fourth, 5.1% in the first quarter of 2026 and 4.7% in the second.

The euro area followed a similar pattern, with annual growth slowing from 5.2% in the third quarter of 2025 to 5.1% in the fourth, 4.6% in the first quarter of 2026 and 4.0% in the second.

Quarterly growth also softened before stabilising. In the EU, prices rose 1.6% in the third quarter of 2025, 0.7% in the fourth, 1.1% in the first quarter of 2026 and 1.2% in the second. In the euro area, the equivalent figures were 1.5%, 0.4%, 0.9% and 1.1%.

Among EU countries with available data, Portugal recorded the strongest annual house price growth at 16.5%, followed by Bulgaria at 15.5% and Lithuania at 14.3%. At the other end of the spectrum, prices fell 2.7% in Finland, 2.2% in Luxembourg and 0.8% in France.

Quarterly gains were led by Lithuania at 5.0%, Bulgaria at 4.5% and Romania at 4.4%. House prices fell 1.4% in Hungary and 0.8% in France. Overall, 23 EU countries posted annual price increases, while three reported declines; on a quarterly basis, prices rose in 24 countries and fell in two.

Rents Remain Under Pressure

The broader European housing market is also still seeing upward pressure on rents. Eurostat reported that EU rents increased 3.0% year on year in the second quarter of 2026, with the euro area following a similar path. Compared with the first quarter, rents across the EU were up 0.7%.

Over the longer period from the 2025 annual average to the second quarter of 2026, rents increased in every EU country. Romania recorded the steepest rise at 41.2%, followed by Croatia at 22.1% and Slovenia at 10.2%. The smallest increases were seen in Estonia and Finland, both at 0.1%, and Luxembourg at 1.2%.

Eurostat’s data on actual rental payments also show that rental costs in Cyprus remained elevated in 2026, with the relevant index at 104.30 in both July and August, after reaching 103.37 in March.

The combination of firmer purchase prices and persistent rent inflation suggests that housing affordability remains under pressure across Europe. For Cyprus, however, the second-quarter numbers stand out: home prices are rising at nearly twice the EU average, underscoring the island’s relatively strong housing market momentum.

LVMH Revenue Rises, But China Weakness Continues To Weigh On Luxury Giant

by THEFUTURE.TEAM

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.

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.

eCredo
Aretilaw firm
Uol
The Future Forbes Realty Global Properties

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter