The construction materials price index reached 117.22 points (2015 base = 100) in April, an increase of 0.02% compared to the previous month of 2024 and a decrease of 1.57% compared to the same month of 2023, according to data released by the Cyprus Statistical Service on Friday (17 May).
The following categories of goods saw the biggest price increases in April in the island nation:
- Minerals (+1.02%),
- Electromechanical products (+2.29%),
- Mineral products (+0.63%),
- Wood products, insulation materials, chemicals and plastics (+0.23%).
On the other hand, there was a decline in the metal products sector (-7.23%).
For the period January-April 2024, the index recorded a decrease of 1.93% compared to the corresponding period of 2023.
The price index for construction products reflects the change in prices for the construction of objects of various types of economic activity.
It should be remembered that the additional costs resulting from the continuous increase in the cost of construction materials are passed on to customers.
As a result, customers have to pay more than the amount originally agreed with the developer. However, there are cases where the contracts signed oblige the builder to bear the additional cost of materials himself, thus preventing them from being passed on to the buyers.
The continuing rise in the cost of building materials is also affecting the mortgage loans of individuals and legal entities. In many cases, it turns out that the money secured by construction loans is not enough: all the initial estimates have changed fundamentally. Borrowers are forced to go back to the bank to ask for an increase in the original loan amount. Banks scrutinise all cases of borrowers returning to them, trying to determine whether the client will be able to withstand the additional financial burden and even larger loans.