According to the Statistical Service of Cyprus, the producer price index in industry reached 110.5 points in September 2021 (2015 base = 100), which is 0.5% more than in August 2021 and 11.5% than a year ago.
From January to September 2021, the index grew by 4.5% compared to the same period in 2020.
In September, compared to August 2021, the indicator remained stable in the mines and quarries sectors, while an increase of 2.4% was recorded in the water supply and materials recovery sector, 0.4% in the electricity supply sector, and 0.4% in the manufacturing industries.
As for the annual changes in September 2021, growth was observed in all sectors: electricity supply - by 36.3%, water supply and extraction of materials - by 32.8%, the processing sector - by 4.9% and mining - by 1.1%.
As for sectors of the manufacturing industry, in September 2021, compared with the same month of the previous year, growth was registered in all types of economic activity, with the most significant growth being in the woodworking industry (26.2%), the production of base metals and metal products (19.9%), the production of rubber and plastics products (8.7%), as well as in the sector of other non-metallic mineral products (4%).
The growth of the producer price index may be a harbinger of another rise in real estate prices.
There is no doubt that this trend will have a negative impact on the Cyprus real estate sector. Already, a number of developers have been forced to raise prices on new buildings by 20% due to a sharp rise in the price of building materials.
You can find profitable options for buying real estate in Cyprus on the DOM Real Estate Portal. The website also has a large number of objects for rent - from residential to commercial real estate. Choose and contact professionals who will help you make the right choice.