Source: stockwatch.com.cy
Economic sentiment in Cyprus dipped slightly in June 2025, with the Economic Sentiment Indicator (ESI) falling by 0.8 points compared to May, according to the latest Business and Consumer Survey from the University of Cyprus’ Economics Research Centre. This decline reflects weaker business confidence across most sectors—except for construction, which remains a rare bright spot in the country’s economic landscape.
The continued strength of the construction sector comes as encouraging news for the real estate industry. While services and retail reported lower confidence due to subdued turnover and sales activity, the Construction Confidence Indicator actually rose. This was primarily driven by improved evaluations of current order books, a sign that development activity is maintaining healthy momentum despite broader economic headwinds.
According to the report, the Services Confidence Indicator fell for the third consecutive month, suggesting mounting pressure on service-oriented businesses. Meanwhile, retail businesses reported declining confidence due to lower sales performance and excess stock levels.
In contrast, developers and property professionals appear to be sustaining confidence, fueled by stable demand and project pipelines. While expectations around hiring may have been tempered, ongoing project commitments signal continued investor interest—particularly in housing, infrastructure, and mixed-use developments.
The Industry Confidence Indicator saw a setback, driven by growing stock levels and reduced expectations for future production, highlighting a slowdown in industrial momentum.
On the consumer side, however, confidence has slightly improved for the second month in a row. The uptick is attributed to more optimistic expectations regarding Cyprus’ economic future and increased readiness among households to make major purchases—an encouraging signal for the housing market. Real estate professionals may interpret this as a window of opportunity, especially for promoting residential property to local buyers exploring long-term investments.
Lastly, while overall economic uncertainty in Cyprus increased in June, consumers expressed less concern, potentially reinforcing a trend of cautious but resilient domestic demand in the property sector.
For developers and investors, the latest data points to a mixed but manageable climate—where construction holds strong and consumer attitudes remain supportive of real estate-related spending, even amid broader market softening.
Source: Stockwatch.com.cy