Construction materials

Construction material costs up 19%

The cost of construction materials in Cyprus continues to increase at an alarming rate, with the annual change in the price index increasing by 19.08% according to the Cyprus Statistical Service (CYSTAT).

Compared to the first quarter of 2021, the index increased by 17.68% during the first quarter of 2022 with significant price increases for all major commodities:

  • Minerals +6.19%
  • Mineral products +6.74%
  • Wood, insulation materials, chemicals and plastics +20.21%
  • Metal products +28.30%
  • Electromechanical products +14.79%

The Central Bank of Cyprus has warned that the war in Ukraine and supply chain problems are expected to further drive up costs given that most building materials are imported. The Bank also warned that higher prices could lead to lower demand.

The impact of rising costs may cause many buildings currently under construction to remain unfinished due to rising costs.

In many cases, the initial loans granted for construction projects, which were based on initial estimates before costs skyrocketed, will be insufficient. Individuals and businesses may be unable to borrow the additional money needed to complete the project.

Press release on construction material costs

Building materials price index (March 2022)

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