According to the Cyprus Statistical Office, prices for building materials in the country continued to rise in July.
On an annualized basis, they increased by 13.63%
The building materials price index for July 2021 reached 114.46 points (versus 2015 = 100.00), an increase of 1.71% versus the previous month and 13.63% versus July 2020 of the year.
By the way, this year the price index for building materials in Cyprus has increased for the seventh time in a row. As you may know, the price index of construction products reflects the change in prices in the construction of objects of various types of economic activity.
It should be noted that the largest increase in prices among building materials was recorded in the following categories:
- metal products - by 29.61%,
- wood products, insulation materials, chemicals and plastics - by 12.30%,
- minerals - by 2.56%,
- electromechanical products - by 10.38%,
- mineral products - by 1.14%.
In turn, in the first seven months of 2021, prices for building materials in Cyprus increased by 7.21%.
The rise in the cost of building materials used in residential construction on the island is primarily due to the dynamics of prices in the world market, in which the Cyprus construction sector is deeply integrated. By the way, the coronavirus pandemic appears to have triggered a number of factors that have led to an increase in demand and a decrease in the supply of specific materials.
It should be noted that the rapid rise in prices for building materials in recent months is of particular concern to developers. Some of them have even started making proposals to mitigate the effects of this phenomenon.
There is no doubt that further increases in the cost of building materials will have a negative impact on the real estate sector as a whole.
A number of developers have already been forced to raise prices for new buildings by 15-20% due to a sharp rise in prices for building materials. And it seems that this is not the limit.