In January 2026, construction material prices increased in Cyprus. According to data from the Cyprus Statistical Service, the Construction Materials Price Index rose by 1,09% compared to January of the previous year. The indicator reflects changes in the cost of products used in the construction industry and directly affects the cost price of housing and commercial real estate.
The price increase is occurring against the background of continued activity in the construction sector, especially in coastal cities where large residential and tourism projects are being implemented. The rise in material costs is gradually being reflected in the final price per square meter.
Which materials increased the most
Across major categories, mineral materials recorded a price increase of 2,91%. Electromechanical goods also rose significantly, with an increase of 2,55%. In the category of wood products, insulation materials, chemical products, and plastics, prices increased by 1,19%. An increase of 0,97% was also recorded for products of mineral origin.
At the same time, metal products were the only category where a decrease of 0,49% was recorded. Experts link this to adjustments in global metal prices and stabilization of supply chains compared to previous periods.
Dynamics compared to December 2025
Comparing January 2026 with December 2025, the Construction Materials Price Index reached 118,89 points, increasing by 0,12%. This is a moderate monthly rise, however it confirms the overall trend of gradual increases in construction resource costs.
Specialists note that even a small monthly increase of 0,12% in the Index can lead to more noticeable cost growth for developers on an annual basis. Under conditions of high demand for real estate, construction companies often factor possible price fluctuations into the cost of new projects.
How rising prices affect the real estate market
The increase in construction material prices by 1,09% year-on-year affects the entire Cyprus real estate market. Construction costs directly depend on prices for raw materials, insulation, engineering systems, and finishing materials. Large residential and hotel projects remain especially sensitive, where the share of material costs can exceed 40% of the total budget.
Against the backdrop of growing housing demand and continued investment inflows into the construction sector, the moderate price increase has not yet led to sharp spikes in real estate prices. However, if the trend continues, it may affect the prices of new properties during 2026. Economists also point out that further dynamics will depend on global prices for energy resources, logistics, and raw commodities, since Cyprus remains an import-dependent market in the field of construction materials.