Construction Costs In Cyprus Increase Significantly Within Year

According to the latest data of Cyprus Statistical Service, published on Wednesday, January 20, prices for construction materials in the country increased by 17.10% in December 2021 compared to the same month last year.

The construction materials price index for December 2021 reached 119.66 points (compared to 2015 = 100.00).

The price index of construction products reflects the change in prices in the construction of objects of various types of economic activity.

The largest increase in the prices of building materials was recorded in the following categories:

1. metal products - by 30,17%,
2. iron and steel products - by 40.45%,
3. wood products, insulation materials, chemicals and plastics - by 19.04%,
4. mineral resources - by 4.75%,
5. electromechanical products - by 13.02%,
6. mineral products - by 5.41%.

The price index for building materials reached 112.06 points (compared to 2015 = 100.00) in 2021.

For the period January-December 2021, the index recorded an increase of 10.98% compared to the same period in 2020.

The increase in the index in 2021 compared to the previous year is mainly due to the increase in prices for the following materials:

1. structural steel - by 46.56%,
2. construction iron - by 44.34%,
3. copper pipes - by 32.78%,
4. steel pipes - by 32.69%,
5. iron railings - by 30.28%,
6. structural grid - by 27.06%,
7. cables - by 24.64%,
8. untreated (sawn) wood - by 22.71%.

Compared to November 2021, there was a further 0.63% increase in December 2021.

It should be noted that the increase in the cost of building materials used in housing construction on the island is primarily due to the dynamics of prices on the world market, in which the construction sector of Cyprus is deeply integrated, as well as the economic consequences of the pandemic.

To revive the economy after the lockdown, many countries have decided to stimulate a number of industries through the use of reserves. One of the most popular options for such support is investments in infrastructure development and construction. This led to a rapid increase in demand and, as a result, an increase in prices for metals and other commodities.