Here are the top business stories in Cyprus from the week starting January 7:
The Cypriot property market demonstrated resilience in 2024, despite facing numerous challenges that are expected to persist into 2025.
Marinos Kineyirou, president of the Cyprus Real Estate Agents Registration Council, conveyed optimism in an interview with Economy Today, stating that the year, although difficult, offers insights into potential challenges for the upcoming year. Reflecting this resilience, data from the Department of Lands and Surveys indicated a 2 per cent increase in sales documents from January to November 2024, compared to the same period in 2023.
Kineyirou further noted, “While this represents a modest increase, it is significant under the prevailing conditions.” He elaborated that inflation, high borrowing interest rates, and stable yet elevated property prices pose substantial hurdles for local buyers.
Additionally, geopolitical tensions and regional conflicts have continued to dampen interest from foreign buyers, adding complexity to the market dynamics.
Simultaneously, the Cyprus Stock Exchange (CSE) showcased robust growth, markedly outperforming global counterparts by climbing 58.3 per cent in 2024, marking it as the best performance among national stock indices. This impressive surge was largely driven by significant gains in the banking sector, particularly after Hellenic Bank’s share price doubled following its acquisition by Eurobank.
On a global scale, stock markets thrived, supported by central banks’ lower interest rates, which were aimed at stimulating growth following previous hikes intended to curb inflation.
Consequently, the easing of monetary policies worldwide has bolstered investor confidence, leading to substantial growth across various sectors.
Although there is no formal sales period, it has become customary for discounts to be announced after the Christmas holidays, typically beginning in early January. Some retailers launched their promotions earlier this month, with the majority expected to commence today.
The festive season reaffirmed December’s reputation as the most lucrative month for retail, enticing many consumers who conducted market research during the holidays to take advantage of the forthcoming discounts.
In tandem with these economic activities, the Cyprus Chamber of Commerce and Industry (Keve) lauded the country’s labour market performance in 2024. Employment rates ascended to 79.8 per cent, and unemployment declined to 5 per cent, marking the best results in fifteen years.
Keve stated, “The data reveal a thriving labour market, with a dynamic increase in employment, a significant reduction in unemployment, and a strengthening of the productive base of the economy, which demonstrates the stable development path of our country.”
Moreover, focusing on specific regional dynamics, Nicosia and Larnaca led advancements in Cyprus’ property market in 2024, driving a 1.5 per cent overall increase in sales documents compared to the previous year, according to data from the land registry.
While Nicosia witnessed a 14 per cent surge in filings, Larnaca recorded a 5 per cent increase.
However, other cities like Paphos, Famagusta, and Limassol did not perform as well, showcasing a mixed regional performance within the property sector.
CIFA noted, “Despite ongoing global uncertainties, Cyprus’ investment funds sector continues to position itself as a dynamic contributor to national economic and social prosperity,” thus emphasising the sector’s resilience and innovative capacity.
Further emphasising the need for strategic support, Limassol’s municipal leaders and business figures convened this week to advocate for increased state funding and a sharper strategic focus from the government.
They argued that Limassol, a significant contributor to Cyprus’ GDP, “deserves better support and recognition,” aiming to secure backing for critical development projects essential for the city’s growth and prosperity.
As part of its strategic initiatives to boost the tourism sector, Cyprus is intensifying efforts to attract Chinese tourists, aiming to secure a larger share of one of the world’s largest outbound travel markets.
This proactive approach was discussed during a strategic dialogue with a delegation from Shanghai, underscoring Cyprus’ commitment to cultivating key international relationships to enhance tourism, particularly as the global tourism landscape recovers post-pandemic.
Concurrently, Cyprus’ shopping malls reported a record-breaking year in 2024, with Nicosia Mall experiencing a 3 per cent increase in visitors compared to 2023, reaching nearly 5.7 million. Preliminary data suggests an 8-10 per cent rise in turnover, expected to close at approximately €195 million excluding VAT.
This performance not only highlights the enduring appeal of physical retail spaces but also their adaptability to changing consumer preferences and economic conditions.
On the regulatory front, the Cyprus Securities and Exchange Commission (CySEC) issued a warning regarding ten websites not authorised to provide investment services, emphasising the ongoing need for vigilance in the investment sector.
Additionally, Cyprus excelled in short-term rental growth across Europe, with notable increases in bookings and nights spent, according to Eurostat. This growth underlines the continued attractiveness of Cyprus as a short-stay destination.
Lastly, the Central Bank of Cyprus (CBC) has implemented instant payments, enhancing the efficiency of financial transactions within Cyprus and across the Single Euro Payments Area (SEPA). This modernisation of payment systems reflects broader efforts to improve the financial infrastructure, supporting both individual and institutional financial activities.
In the realm of transport, Cyprus’ international airports, Larnaca and Paphos, experienced record-breaking passenger traffic in 2024, further establishing the island as a prime destination for tourists and business travellers alike. This achievement not only highlights the enduring appeal of Cyprus but also its strategic importance as a travel hub in the Mediterranean.
Amid these diverse developments, Alexandros Iosifidis is set to take over as the new director general of the Cyprus Shipping Chamber (CSC) in April 2025, succeeding Thomas Kazakos. With 30 years of experience, Iosifidis is committed to advancing the interests of Cypriot shipping on a global scale, reflecting the interconnected nature of Cyprus’ economic sectors and their collective impact on the national and international stages.
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