Cyprus construction prices rise 4.9 per cent as production growth remains modest

Cyprus’ construction sector recorded annual production growth of 1.1 per cent during the second quarter of 2026, while output prices increased by 4.9 per cent, according to figures released by the statistical service (Cystat) on Friday. The Index of Production in Construction reached 130.28 units during the April-June period, based on a reference value of 100 units in 2021. This represents an increase of 1.1 per cent compared with 128.83 units during the corresponding quarter of 2025. Meanwhile, the Output Prices Index in Construction reached 132.48 units, compared with 126.32 units in the second quarter of last year. The index also recorded a quarterly increase of 2.5 per cent compared with the first quarter of 2026, reflecting a further rise in prices charged for construction work. Looking at the first half of the year, construction production increased by 1.4 per cent compared with the January-June period of 2025. During the same six-month period, construction output prices rose by 4.7 per cent, showing that prices continued to increase considerably faster than production. According to Cystat, the production index measures changes in construction activity at constant prices, while the output prices index reflects the prices charged to clients for construction work, including materials, labour, energy, transport and contractors’ profits.