The cost of construction materials in Cyprus continues to rise at an alarming rate, with the annual change in the price index rising 19.08% according to the Cyprus Statistical Service (CYSTAT).
Compared to the first quarter of 2021, the index rose 17.68% during the first quarter of 2022 with significant price increases in all major commodities:
- Minerals +6.19%
- Mineral products +6.74%
- Wood, insulation materials, chemicals and plastics +20.21%
- Metallic products +28.30%
- Electromechanical products +14.79%
The Cyprus Central Bank has warned that the war in Ukraine and supply chain problems are expected to push up costs even further given that most building materials are imported. The Bank also warned that higher prices may result in reduced demand.
The impact of rising cost may result in many buildings currently under construction remaining unfinished as increasing costs.
In many cases initial loans granted for construction projects, which were based on initial estimates before costs skyrocketed, will be insufficient. Individuals and companies may be unable to borrow the additional money required to complete the project.
Construction materials costs press release
Price Index of Construction Materials (March 2022)
