Construction and Renovation Costs in Cyprus Are Rising Rapidly

Construction and major property renovations in Cyprus are becoming increasingly expensive. According to the Statistical Service, the cost of construction materials continues to rise steadily, directly affecting developers, private builders, and homeowners. Price increases are impacting virtually every category of materials, from metals and timber to electrical equipment and plastics.

Rising construction costs remain one of the key factors shaping the Cyprus property market. They affect not only the prices of newly built properties but also the cost of renovations, refurbishments, and commercial construction projects.

Construction Materials Price Index Increased by More Than 3%

In June 2026, the Construction Materials Price Index reached 122.74 points (2021 = 100). Compared to June 2025, the index increased by 3.12%.

Statistics show that price increases affected all major categories of construction materials. The most significant annual increases were recorded in the following segments:

1. metal products — 5.02%;
2. timber products, thermal insulation materials, chemical products, and plastics — 4.07%;
3. electrical and mechanical equipment — 2.99%;
4. mineral raw materials — 2.49%;
5. mineral-based products — 0.61%.

Experts attribute the rise in prices to several factors, including higher raw material costs, increased transportation expenses, rising electricity prices, and persistently strong demand for construction materials across the European market.

Which Construction Materials Have Increased the Most in Price?

More detailed statistics reveal which specific materials experienced the largest price increases. Within the mineral raw materials category, the price of non-metallic materials rose by 1.56%, cement mixtures by 3.82%, and natural stone by 1.30%. Among mineral-based products, cement products increased by 0.79%, while ceramic materials remained virtually unchanged, recording a marginal increase of just 0.01%. In the timber, insulation, chemicals, and plastics category, the following changes were recorded:

1. timber — 4.38%;
2. thermal insulation materials — 1.16%;
3. chemical products — 2.64%;
4. plastic products — 6.53%.

Plastic materials recorded the highest increase within this category. They are widely used in utility infrastructure and modern façade systems. In the metals sector, steel and iron products became 3.76% more expensive, while aluminium structures and products made from other metals increased by 7.56%, the highest figure among all individual categories of construction materials.

Within the electrical products category, electrical equipment rose in price by 6.23%. At the same time, heating and air-conditioning equipment became 1.67% cheaper, while other electromechanical products increased by 2.77%.

First-Half Results for 2026

Between January and June 2026, the overall Construction Materials Price Index was 1.62% higher than during the same period last year. The largest increases during the first six months of the year were recorded in:

1. electrical and mechanical equipment — 2.59%;
2. timber, insulation materials, chemicals, and plastics — 2.27%;
3. mineral raw materials — 1.89%;
4. metal products — 1.78%;
5. mineral-based products — 0.30%.

Although the pace of growth has moderated compared to previous years, construction costs in Cyprus continue to rise.

What Rising Construction Costs Mean for the Cyprus Property Market

Higher construction material prices are affecting virtually every part of the island's real estate sector. Developers are revising budgets for new projects, construction companies are factoring higher costs into their estimates, and property owners are facing increased expenses for renovations and refurbishments.

The impact is particularly evident in Cyprus's major cities—Nicosia, Limassol, Larnaca, and Paphos—where the construction of residential developments, commercial properties, and tourism projects continues at a strong pace.

According to market participants, if the prices of key construction materials continue their upward trend during the second half of 2026, the cost of newly built homes is also likely to keep rising. At the same time, strong demand for real estate and limited supply in Cyprus's most sought-after regions continue to support the market's investment appeal despite increasing construction costs.