**Cyprus Building Costs Climb Again**
Cyprus is experiencing a continued rise in construction material prices, as reported by the Statistical Service (Cystat) on Monday. In June, the price index for construction materials reached 122.74 units, with 2021 serving as the base year set at 100. This marks a 0.55% increase from May and a 3.12% rise compared to June 2025.
Throughout the first half of the year, construction material prices were 1.62% higher than during the same period in 2025. The increase was primarily driven by significant price hikes in aluminium, plastics, and electrical fixtures.
Among the five main categories of construction materials, metallic products saw the largest annual increase, climbing by 5.02%. The index for metallic products reached 111.90 units, reflecting a monthly increase of 0.52%. Over the January-to-June period, this category experienced an average increase of 1.78%. The rise was largely attributed to products made from aluminium and other metals, whose index surged to 124.30 units. This segment recorded a monthly price increase of 0.32%, a year-on-year rise of 7.56%, and a 4.14% increase during the first six months of the year.
Iron and steel products also contributed to the upward trend, with their index reaching 106.43 units. This category saw a monthly increase of 0.63%, an annual rise of 3.76%, and a 0.60% increase for the January-to-June period.
The broader category encompassing wood products, insulation materials, chemicals, and plastics experienced a 4.07% annual increase. This category's index reached 125.17 units, with gains of 0.93% from May and 2.27% during the first half of 2026. Within this group, plastic products climbed to 132.41 units, reflecting a monthly price increase of 0.57%, a year-on-year rise of 6.53%, and a 4.66% increase during the first six months.
Wood products reached an index of 126.91 units after rising by 1.08% from May, with annual increases of 4.38% and 2.13% during the January-to-June period. Chemical products recorded the most significant monthly increase, advancing by 1.29% to an index of 115.82 units. Year-on-year, they were 2.64% more expensive, with a 1.54% increase across the first half of the year.
Insulation material prices remained stable from May at 118.68 units, although they were 1.16% higher annually and 1.32% above their average level during the corresponding six-month period of 2025. Electromechanical products showed a year-on-year increase of 2.99%, with their index reaching 118.62 units. Prices in this category increased by 0.11% from May and by 2.59% during the first six months.
Electrical fixtures were a significant contributor to the price pressure within the electromechanical category, reaching an index of 140.51 units. This segment experienced monthly increases of 0.26%, annual rises of 6.23%, and a 5.20% increase during the first half of the year. Conversely, heating and cooling equipment was the only subcategory to record declines across all three comparisons, with its index falling to 94.08 units.
The minerals category reached an index of 138.99 units, reflecting a 0.55% increase from May, a 2.49% rise year-on-year, and a 1.89% increase during the first half of the year. Cement prices rose to 144.09 units, the highest index level among the listed subcategories, following a monthly increase of 0.58%, a 3.82% rise annually, and a 1.42% increase during the January-to-June period.
Mineral aggregates recorded an index of 138.78 units, with increases of 0.44% from May, 1.56% from a year earlier, and 3.08% during the first half. Stone prices also rose, reaching 131.89 units, with monthly, annual, and six-month increases of 0.62%, 1.30%, and 1.54%, respectively.
The smallest annual increase among the main categories was seen in mineral products, with their index reaching 126.99 units. This category saw a 0.43% monthly increase, a 0.61% annual rise, and a 0.30% increase during the first half of the year. Cement products rose to 127.36 units, with increases of 0.33% monthly, 0.79% annually, and 0.86% during the January-to-June period. Ceramics also recorded a notable monthly increase of 0.76%, taking their index to 125.71 units, although prices remained unchanged from June 2025.
The ongoing rise in construction material prices in Cyprus highlights the challenges faced by the construction industry, which may impact future projects and overall economic conditions in the region.