According to the newest data released by the Cyprus Statistical Service on Tuesday (26 June), the construction materials price index reached 118.22 points in May (2015 base = 100), an increase of 0.11% compared to the previous month of 2024 and a decrease of 1.32% compared to the same month of 2023.
The following categories of goods rose the most in price in May compared to April in the island nation
- Minerals (+1.01%),
- Electromechanical products (+3.24%),
- Mineral products (+0.49%),
- Wood products, insulation materials, chemicals and plastics (+0.30%).
On the other hand, there was a 6.68% decrease for fabricated metal products.
The highest annual increase was recorded for electrical equipment (+5.46%), followed by chemical products (+3.75%). Heating and cooling products rose by 3.27% and stone by 1.60%. Other construction products, such as aggregates (+0.93%), powder products (+0.75%) and wood products (+0.22%) showed more moderate increases.
The price index for construction products reflects the change in prices for the construction of objects of different types of economic activity.
It should be remembered that the additional costs resulting from the continuous increase in the cost of construction materials are borne by customers.
As a result, clients 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.