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Cyprus Readies For Economic Growth Amid Major Infrastructure Investments And Rising Exports

by THEFUTURE.TEAM

The Central Bank of Cyprus projects economic growth between 2026 and 2028, supported by private infrastructure investment and export activity. Christodoulos Patsalides presented the outlook in the bank’s 2025 annual report.

Robust Economic Forecast

The report outlines baseline projections assuming a gradual de-escalation of geopolitical tensions. Growth is expected to slow from 3.8% in 2025 to 2.7% in 2026, before rising to 2.9% in 2027 and 3.1% in 2028. Inflation is projected to stabilize around 2% over the medium term under this scenario.

Inflation And Policy Outlook

Inflation is forecast at 2.7% in 2026, driven by higher energy, food, and input costs. Price growth is expected to ease to 2% in 2027 and increase slightly to 2.2% in 2028. The increase in 2028 reflects the impact of the expanded Emissions Trading System (ETS2) on fuel prices.

Infrastructure Investments And Export Drive

Christodoulos Patsalides said private infrastructure investment and export growth in services, including technology and finance, are expected to support domestic demand. Higher disposable income and labor market conditions are expected to support consumption. Tourism activity is projected to decline in 2026, with recovery expected from 2027.

Banking Sector Resilience And Governance Modernization

The banking sector reports non-performing loans at 1.6%, compared with the EU average of 1.8%. Capital and liquidity indicators remain within regulatory requirements. The Central Bank is considering changes to its governance structure, including a collective model aligned with European practices.

Outlook For Growth And Stable Labour Markets

GDP is supported by private consumption and investment, according to the report. Public finances show public debt below 60% of GDP, alongside improved credit ratings from international agencies. Unemployment is projected to stabilize at around 4.5% between 2026 and 2028, reflecting current labour market conditions.  Christodoulos Patsalides, Governor of the Central Bank of Cyprus, outlined structural reforms and policy measures aimed at maintaining price stability and supporting economic activity.

Athens And Nicosia Still Offer Some Of Europe’s Most Affordable Apartments, Despite Rising Prices

by THEFUTURE.TEAM

Housing costs in Nicosia remain well below those in most western European capitals, according to new data from Global Property Guide, highlighting the wide gap in residential property prices across Europe.

Nicosia And Athens Remain Among Europe’s More Affordable Capitals

The latest figures from Global Property Guide, which tracks residential property markets across 88 countries, show that both Nicosia and Athens remain among Europe’s more affordable capital cities, despite years of steady price growth.

In Cyprus, the median asking price for a one-bedroom apartment in Nicosia stands at €145,000. Two-bedroom apartments are priced at €205,000, while three-bedroom homes reach €280,000.

That places Nicosia slightly above Athens in the one-bedroom category, where the Greek capital records a median asking price of €135,000. For two-bedroom and three-bedroom apartments, however, prices are identical in both cities at €205,000 and €280,000, respectively.

Western Europe Commands A Premium

Athens also remains relatively affordable by European standards. Median asking prices for one-bedroom apartments reach €174,000 in Warsaw, €240,000 in Madrid, €310,000 in Milan and €325,000 in Berlin.

The gap is even more pronounced in Western Europe, where one-bedroom apartments cost around €440,000 in both Paris and Lisbon, more than three times the price seen in Athens.

The difference becomes even greater for larger homes. A three-bedroom apartment carries a median asking price of €280,000 in both Athens and Nicosia, compared with €685,000 in Lisbon, €690,000 in Milan, €845,000 in Berlin and €1.08 million in Paris.

For two-bedroom apartments, the contrast is equally striking. While homes are priced at €205,000 in Athens and Nicosia, equivalent properties cost €380,000 in Madrid, €455,000 in Milan, €527,000 in Berlin, €620,000 in Lisbon and €695,000 in Paris.

Europe’s Most Expensive Property Markets

Global Property Guide’s data also highlights the wide variation in residential property prices across Europe.

Zurich is the continent’s most expensive market for a one-bedroom apartment, with a median asking price of €1.151 million. It is followed by Luxembourg (€669,000), Copenhagen (€601,000), Munich (€548,000) and London (€522,000), while Paris and Lisbon are both priced at around €440,000.

The Most Affordable Cities

At the other end of the market, the lowest asking prices are concentrated in south-eastern and eastern Europe. Median asking prices for a one-bedroom apartment stand at €125,000 in Riga, €118,000 in Podgorica, €110,000 in Bucharest, €103,000 in Sarajevo and €79,000 in Chisinau.

According to the report, Skopje is Europe’s most affordable capital for one-bedroom apartments, with a median asking price of just €55,000.

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