The festive period functions every year as an informal mirror of the economy, and Christmas 2025 in Cyprus left behind a picture of a market that is holding up, but with increasingly visible imbalances.
According to data from the Economics Research Centre University of Cyprus, economic sentiment improved in December, driven mainly by stronger consumer confidence and improved business sentiment in services and retail trade. At the same time, both businesses and households recorded higher expectations of price increases in the coming months, a finding that lends the positive climate a sense of fragile optimism.
Retail activity confirms the picture
This picture is reinforced by data from the Statistical Service of Cyprus. The retail trade turnover value index rose by 4.6 percent in November 2025 compared with the same month a year earlier, while the turnover volume index increased even more sharply, by 7.6 percent. In practical terms, this suggests that not only did revenues rise due to prices, but that the actual quantities of goods purchased also increased.
The question, however, is how these numbers translate at the level of the consumer.
How households experienced the festive market
The Cyprus Consumers Association closely monitored the market during the festive period, focusing on three main sectors: the Christmas table and basic necessities, clothing and footwear, and gifts, toys and technology products.
As the association’s president, Marios Drousiotis, explained, “2025 was a better year than 2024 in certain sectors and categories, for various reasons.” Footfall in shops was higher and overall movement was visible. However, he stressed that what matters is not only how many people enter stores, but how many leave carrying shopping bags.
In relation to the Christmas table, the association did not observe significant price increases compared with 2024. “Prices remained stable,” Drousiotis noted, “but that does not mean they are low. They remain very high for households.” As he explained, the benefit for consumers was avoiding further increases, not that the overall cost became more affordable.
Price observatories show mixed movements
This assessment is consistent with data from the Consumer Protection Service’s Price Observatory. In November 2025, the majority of basic product categories recorded month on month decreases, while increases were generally limited to a range of 1 to 3 percent. At the same time, the Christmas Price Observatory revealed sharp variations within the festive table itself: notable increases in beef prices, decreases in pork, marginal changes in lamb and poultry, and further increases in traditional festive sweets.
Supermarkets recorded particularly strong movement. “We saw very high activity this year,” Drousiotis said, underlining that this is a sector the association monitors especially closely.
Clothing, malls and shifting consumption
In clothing and footwear, the picture was more complex. According to the Consumers Association, there was no substantial improvement compared with last year. Shops outside shopping malls recorded low footfall, particularly during the holidays. By contrast, performance within malls was similar to or even better than in 2024, confirming the continued shift of consumption towards large, organised retail spaces.
Gifts, toys and technology products performed well overall. “These categories did well too,” Drousiotis said, adding that, taken as a whole, 2025 can be described as a good year in terms of consumer trends.
More cautious consumers
One of the most telling findings, however, relates less to spending levels and more to behaviour. According to the Consumers Association, fewer complaints were recorded this year compared with previous festive periods. “Consumers are becoming more suspicious, more informed, and they shop in a more measured and careful way,” Drousiotis observed.
He pointed to the example of Black Friday, a retail event which, in his view, appears to be losing credibility in Cyprus. During a one hour observation conducted by the association at a large chain store in a shopping mall, 105 people entered the store, but only 31 made a purchase. “We are talking about roughly 30 percent buying and 70 percent simply browsing,” he explained.
Equally indicative was the time spent in store. Purchases made within five to ten minutes were interpreted as targeted decisions, while stays of more than twenty minutes without a purchase pointed to hesitation and purely informational browsing.
“Satisfactory under the circumstances”
A similar assessment, from the perspective of small and medium sized businesses, was offered by POVEK. Its general secretary, Stefanos Koursaris, described both the year and the festive period as “satisfactory under the circumstances.”
According to Koursaris, consumption increased in basic necessities, toys, gifts and electronic goods, while clothing moved at moderate levels, as “people have learned to hold back and wait for sales.”
Despite the market’s resilience, he placed particular emphasis on the issue of high prices and the unequal distribution of sales. “We are seeing a concentration of consumption in large shopping centres, supermarkets and major retail chains,” he said, stressing that small and medium sized businesses and the middle class are absorbing repeated blows as a result.
POVEK has called on the state to seriously examine large scale retail developments that, in its view, reinforce this trend, referring to two proposed shopping malls in Limassol and reports of another planned development in Larnaca. Koursaris also raised concerns over extended operating hours, noting that a seven day, year round trading model places suffocating pressure on small businesses. “Market regulation laws are both legitimate and necessary,” he concluded.
A festive snapshot with lasting questions
Overall, Christmas 2025 painted the picture of a market that is active, but not without strain. Consumers continue to spend, but with greater caution. Prices did not spike dramatically, yet they remain persistently high. And while the headline figures suggest resilience, the gap between large retail players and smaller businesses is becoming increasingly visible.
If the festive period reveals anything in numbers, it is that the debate over the cost of living and the structure of the market in Cyprus remains very much open.