According to the Cyprus Statistical Office, prices for building materials on the island increased in April, 2021 by 5.3% compared to last year.
The first four months of this year also saw a 4.06% rise in prices over the same period last year.
The building materials price index for April 2021 reached 106.30 points (2015 = 100.00), an increase of 0.98% compared to the previous month and 5.30% compared to April 2020.
Let us remind you that 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 for building materials was recorded in the following categories:
- metal products - by 12.73%,
- wood products, insulation materials, chemicals and plastics - by 3.55%,
- minerals - by 1.64,
- electromechanical products - by 1.16%,
- mineral products - by 1.08%.
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.
Unfortunately, the rise in prices for building materials has eaten away a significant part of the profit that local developers were counting on. And it seems that this is not the limit. There is no doubt that a further rise in the cost of building materials will have a negative impact on the real estate sector and may further lead to higher prices for new buildings.
The share of rolled metal in the price per square meter is up to 10%, thus a number of developers are likely to raise prices for apartments and houses by an average of 10-15%.