EU construction output recovers in December after autumn slump

Seasonally adjusted production in construction increased by 0.9 per cent in the euro area and by 1.2 per cent in the EU in December 2025, compared with November 2025, according to Eurostat.

In November 2025, production in construction had fallen by 1.5 per cent in both the euro area and the EU.

Compared with December 2024, production in construction decreased by 0.9 per cent in the euro area in December 2025, while it remained stable in the EU.

For the full year 2025, the annual average production in construction remained stable in the euro area compared with 2024 and increased by 0.5 per cent in the EU.

Within the euro area in December 2025, output rose by 0.9 per cent in the construction of buildings, by 2.3 per cent in civil engineering, and by 0.6 per cent in specialised construction activities compared with the previous month.

Across the EU, production increased by 1.2 per cent in construction of buildings, by 3.9 per cent in civil engineering, and by 0.9 per cent in specialised construction activities over the same period.

Among Member States for which data were available, the highest monthly increases were recorded in Hungary at 6.6 per cent, Poland at 5.1 per cent and Slovakia at 4.0 per cent.

The largest monthly decreases were observed in Austria at 9.2 per cent, Slovenia at 3.2 per cent and Bulgaria at 2.3 per cent.

On an annual basis in the euro area, production in construction declined by 3.3 per cent for construction of buildings in December 2025 compared with December 2024, while civil engineering increased by 1.6 per cent and specialised construction activities rose by 0.2 per cent.

In the EU, construction of buildings fell by 0.7 per cent year on year, whereas civil engineering increased by 0.9 per cent and specialised construction activities by 1.1 per cent.

The largest annual decreases among Member States were recorded in Austria at 12.3 per cent, Belgium at 4.3 per cent and Spain at 3.9 per cent.

The highest annual increases were observed in Slovakia at 11.6 per cent, Slovenia at 10.2 per cent and Finland at 6.6 per cent.

While Cyprus data were not included in the Eurostat release, recent domestic figures point to continued momentum in the local construction and property sectors.

According to the Cyprus Statistical Service, the Price Index of Construction Materials rose to 118.89 units in January 2026, with 2021 as the base year set at 100 units.

This represented a monthly increase of 0.12 per cent compared with December 2025 and a year on year rise of 1.09 per cent.

The Statistical Service said that “the Price Index of Construction Materials shows the evolution of the cost of construction materials incurred by the contractor,” the Statistical Service said.

By main commodity category, the most significant annual increases were recorded in minerals at 2.91 per cent and in electromechanical products at 2.55 per cent.

Products of wood, insulation materials, chemicals and plastics increased by 1.19 per cent, while mineral products rose by 0.97 per cent.

Metallic products registered a decrease of 0.49 per cent.

Among sub-categories, mineral aggregates surged by 8.34 per cent and stones by 4.97 per cent since January 2025.

Electrical fixtures increased by 4.65 per cent, while iron and steel products fell by 1.73 per cent.

Ceramics and cements recorded year on year declines of 1.47 per cent and 1.38 per cent respectively.

The methodological information explained that “the price indices are based on the year 2021, meaning that they show the evolution of the price of a certain material in relation to its average price in 2021,” the methodological information explained.

It also clarified that “in the base year, the average of the price indices for the twelve months is 100,” the methodological information explained.

Further evidence of sustained activity emerged from a recent report by Landbank Analytics, which showed that Cyprus’ market for newly built residential property exceeded €2.5 billion in 2025.

A total of 7,819 contracts were filed for new homes, including off-plan developments, confirming strong activity across all districts.

Apartments dominated the market with 6,382 transactions, representing 81.6 per cent of the total and generating €1.77 billion in value, while 1,437 house sales amounted to 737.9 million euro.

The most expensive transaction involved a Limassol apartment sold for about €15.2 million, while the highest-priced house reached roughly €6.2 million.

In Nicosia, 2,171 new residential transactions were recorded, reflecting steady domestic demand.

Apartments accounted for 1,836 sales generating €349.6 million, compared with 335 houses worth 105.5 million euro.

Average apartment prices stood at approximately €190,000, the lowest nationwide, while houses averaged around €315,000.

Recent data from the Cyprus Statistical Service also showed that building activity in Cyprus strengthened in October 2025.

A total of 855 building permits were authorised during the month, with a value of €447.6 million and a total area of 356,200 square metres, providing for 1,950 dwelling units.

Over the January to October 2025 period, permits reached 6,490 compared with 5,955 a year earlier, marking a rise of 9 per cent.

During the same period, the value of licensed projects increased by 27.7 per cent, the covered area by 30.7 per cent and authorised housing units by 33.1 per cent.

Residential building permits totalled 4,832 in the ten-month period, up from 4,047 in 2024.

Non-residential buildings declined to 684 permits from 965, while civil engineering projects increased to 391 from 347 and plot divisions rose to 488 from 431.

Road construction fell to 95 permits compared with 165 in the previous year.

In surface terms, residential developments covered 2.18 million square metres compared with 1.61 million a year earlier, while non-residential buildings reached 424,127 square metres and civil engineering works expanded to 11,970 square metres, bringing the total to 2.61 million square metres.

By value, residential projects amounted to €2.50 billion compared with €1.91 billion in 2024, while non-residential projects rose to €518.6 million and civil engineering works to €148.3 million.

Plot division works declined to €29.8 million from €34.6 million, and road construction dropped to €7.45 million from €12.41 million.

Apartment buildings accounted for the largest share of new housing, reaching 8,519 units compared with 5,958 a year earlier, while single houses rose to 3,072 units from 2,350 and two-unit buildings to 949 from 705.

Finally, mixed residential-commercial buildings fell sharply to 230 units from 578.