When discussing construction costs in Cyprus, the price per square meter of housing is usually the main topic. However, recent data from the Statistical Service shows significant differences in construction costs between residential, commercial, and hotel properties.
Hotels lead the way in terms of price per square meter
According to official statistics, hotels are the most expensive category, costing an average of over €2,200 per square meter to build. They are followed by clinics and medical centers, with tourist apartments in third place.
The 2025 report, which covered projects completed in 2023, revealed clear trends: facilities for the tourism and medical industries are consistently more expensive than residential or industrial buildings. However, these figures are not absolute because many factors influence the price, including material costs, level of finish, purpose of the property, and location.
Why does the cost per square meter vary so much?
The data is based on an annual survey of building permits and residential properties. The average price is calculated by dividing the total cost by the total area of the building. However, a small number of projects in some categories may distort the average cost. Architectural design, the use of energy-efficient technologies, transport accessibility, and the level of finish also affect the actual cost.
What is included in the official cost calculation?
According to the Statistical Service, the average construction cost includes labor, materials, architectural and engineering services, permits, general contractor services, and VAT (if applicable). The price of land is not included in the calculation.
The average construction cost is as follows:
- For hotels: €2,202 per m²
- For clinics and medical centers €1,988 per m²
- For tourist apartments, it is €1,775 per m²
- Restaurants cost €1,651 per m²
- For educational institutions, it is €1,306 per m²
- Residential buildings cost €1,214 per m²
- Apartments cost €1,075 per m²
- Industrial buildings cost €727 per m²
- Warehouses cost €781 per m²
- Agricultural facilities cost €213 per m²
These are real prices for housing construction in 2025
According to estimates by developers and construction companies, the real cost of building a house or apartment in Cyprus will range from €1,700 to €2,500 per square meter in 2025, excluding the price of land. The minimum price of €1,700 is only possible if you use cheaper materials and finishes and have your own plot of land.
This amount includes exterior work, landscaping, and utilities. If the price is lower, then not all the necessary work may be included in the estimate.
What does this mean for investors and developers?
For private developers planning to build a house in 2025, it is important to create a realistic budget and consider possible increases in material prices. The situation is even more complicated for hoteliers because hotel projects require more expensive materials and compliance with high comfort and energy efficiency standards.
Experts predict that, if current trends continue, construction costs in Cyprus could increase by 5–8% in 2026 due to inflation and the demand for premium materials.