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Cyprus construction material prices rise for another month

Cyprus Mail · 2026-09-18

AI SUMMARY

• What happened: Cyprus' construction material prices rose in August, with the price index reaching 123.09 units, marking a 0.07% monthly increase and a 3.39% annual rise. • Why it matters: The continued increase in construction material prices, particularly in categories like electrical fixtures and plastics, indicates ongoing inflationary pressures in the construction sector, impacting project costs and potentially housing affordability. • What to watch next: Monitor future reports from Cystat for trends in construction material prices and their implications for the broader economy, as well as any government responses to mitigate rising costs.

**Title: Cyprus Construction Material Prices Rise for Another Month**

Cyprus has experienced a continued rise in construction material prices, with significant increases noted in various categories for the month of August. According to the latest figures released by the Cyprus Statistical Service (Cystat), the price index for construction materials reached 123.09 units, using 2021 as the base year, where the index is set at 100. This marks a slight monthly increase of 0.07 percent and a more substantial annual rise of 3.39 percent compared to August 2022.

Throughout the first eight months of 2023, construction material prices have averaged 2.06 percent higher than the same period in 2022. The report highlights that metallic products and products covering wood, insulation materials, chemicals, and plastics saw the most significant annual increases, each category rising by 4.6 percent.

The index for metallic products stood at 111.60 units, reflecting a decrease of 0.19 percent from July but still showing a 2.52 percent increase over the January-to-August period compared to the previous year. Products made from aluminium and other metals reached an index of 124.26 units, experiencing a minor decline of 0.14 percent for the month, yet remaining 5.99 percent higher year on year and 4.63 percent higher for the first eight months.

Iron and steel products also saw a decrease, falling by 0.22 percent to an index of 106.01 units. Despite this monthly decline, prices were still 3.90 percent higher compared to the same month last year and 1.47 percent above their average level for the January-to-August period of 2022.

Wood products, insulation materials, chemicals, and plastics recorded an index of 125.81 units, with a minimal increase of 0.02 percent from July. This category experienced a year-on-year rise of 4.6 percent and a 2.85 percent increase during the first eight months. Within this group, plastic products exhibited the most significant annual increase, climbing by 6.58 percent to an index of 132.48 units, although prices remained unchanged from July. Wood products saw a slight decrease of 0.01 percent from July, standing at 127.79 units, but were still 5.11 percent more expensive than in August 2022.

Chemical product prices increased by 0.22 percent during the month, reaching an index of 116.25 units, which is 3.02 percent higher than the previous year and 1.89 percent higher for the January-to-August period. Insulation materials remained stable at 118.68 units, with a year-on-year increase of 1.16 percent and a 1.28 percent rise over the first eight months.

Electromechanical products saw an annual increase of 3.58 percent, with their index reaching 119.29 units. Prices rose by 0.34 percent from July and increased by 2.80 percent during the first eight months. Notably, electrical fixtures recorded the steepest annual rise among all subcategories, reaching an index of 141.91 units after a monthly increase of 0.79 percent, marking a 7.30 percent rise year on year and a 5.64 percent increase during the January-to-August period.

In contrast, prices for heating and cooling equipment remained unchanged from July at 94.08 units, which is 1.67 percent lower than in August 2022 and 1.18 percent below their average level during the first eight months. Other electromechanical products also held steady at 119.71 units, showing a 3.22 percent annual increase and a 2.48 percent rise for the January-to-August period.

The minerals category reached an index of 139.08 units, up 0.03 percent from July, reflecting a 2.67 percent year-on-year increase and a 2.06 percent rise during the first eight months. Cement prices climbed to 144.31 units, the highest index level among the listed subcategories, after a monthly increase of 0.06 percent, marking a 4.79 percent annual rise and a 2.12 percent increase during the January-to-August period.

Mineral aggregate prices remained unchanged from July at 138.78 units, although they rose by 0.67 percent annually and 2.58 percent over the first eight months. Stone prices also held steady at 131.89 units, with a year-on-year increase of 1.30 percent and a 1.48 percent rise across the eight-month period.

The smallest annual increase among the main categories was seen in mineral products, with an index of 127.93 units, up 0.33 percent from July, and a 1.35 percent increase year on year. Cement products rose to 128.44 units, recording increases of 0.38 percent monthly and 1.63 percent annually. Ceramics also climbed by 0.16 percent from July to 126.20 units, showing a 0.39 percent increase compared to August 2022, although their average during the first eight months was 1.12 percent lower than the previous year.

Overall, the rising costs of construction materials in Cyprus reflect ongoing trends in the industry, with various factors contributing to the increases across multiple categories.

Source: Cyprus Mail
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