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EU’s Wind Capacity Growth Falls Short Of Climate Goals

Despite wind power providing 20% of Europe’s electricity in 2024, the European Union is lagging behind in building the wind energy infrastructure needed to meet its ambitious 2030 climate and energy targets, according to industry group WindEurope.

Key Insights

  • Insufficient Capacity Growth: Europe added 15 gigawatts (GW) of new wind energy capacity in 2024, comprising 13 GW of offshore and 2 GW of onshore wind.
  • Shortfall Against Targets: The EU contributed 13 GW of this total but needs to build at least 30 GW annually to meet its 2030 goal of wind power accounting for 34% of electricity consumption. The target rises to over 50% by 2050.

Challenges Hindering Progress

  1. Permitting Issues: Many EU governments are failing to implement streamlined permitting processes, delaying project approvals.
  2. Grid Connection Bottlenecks: Infrastructure and logistics challenges have slowed the connection of new wind farms to the grid.
  3. Economic Electrification Lag: Europe’s transition to an electrified economy is not progressing quickly enough to integrate the growing wind power capacity.

Industry Context

The offshore wind sector has faced significant hurdles, including higher component costs, logistical complexities, and permitting delays. Investments in offshore wind projects have slowed, and final investment decisions remain challenging for many companies.

“Europe is not building enough new wind farms. For 3 main reasons: a) most governments are not applying the good EU permitting rules; b) new grid connections are delayed; c) Europe is not electrifying its economy quickly enough,” said Giles Dickson, WindEurope’s CEO.

To achieve its targets, the EU must address permitting inefficiencies, accelerate grid upgrades, and drive electrification across its member states. Without immediate action, Europe risks missing its climate goals and falling behind in the global energy transition.

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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