The cost of construction materials in Cyprus continues to rise. According to new data released by the Cyprus Statistical Service, the Construction Materials Price Index reached 122.07 points in May 2026, recording an increase of 1.16% compared to April and a year-on-year rise of 2.62%.
The latest figures confirm that the island’s construction sector continues to face higher costs for key materials, affecting both large-scale development projects and residential property prices.
Metals Remain the Main Driver of Price Growth
The most significant annual increase was recorded in the metal products category. Over the past 12 months, the cost of metal products rose by 4.31%.
Particularly sharp increases were seen in aluminum and other metal products, with prices climbing by 7.17%. Experts attribute this trend to sustained demand for construction materials across Europe and the Middle East, as well as fluctuations in global raw material markets.
Higher metal prices directly impact the cost of residential developments, commercial buildings, and infrastructure projects, as this category accounts for a substantial share of overall construction expenses.
Plastics and Electrical Equipment Are Also Becoming More Expensive
Significant price increases were also recorded in other material categories. Timber products, insulation materials, chemicals, and plastics rose by 3.49% compared to May last year. Prices for plastic products alone increased by 5.93%.
Notable growth was also observed in the electrical equipment segment. Electromechanical products increased by 2.97%, while electrical materials became 5.97% more expensive.
Given the growing demand for energy-efficient buildings, air-conditioning systems, solar panels, and modern engineering solutions, this category is playing an increasingly important role in overall construction costs.
Price Growth Continues Since the Beginning of the Year
Between January and May 2026, the overall Construction Materials Price Index increased by 1.32% compared to the same period last year.
The largest cumulative increase was recorded in electromechanical products, which rose by 2.5%. They were followed by timber products, insulation materials, chemicals, and plastics, which increased by 1.91%. The cost of mineral materials rose by 1.77%.
This trend confirms that rising costs for key construction-sector components have remained a persistent issue for several years.
Cyprus’s real estate market continues to be one of the most active in the region. Dozens of new residential and tourism projects are underway in Limassol, Paphos, Larnaca, and Nicosia, while demand from foreign investors remains strong.
However, rising construction material costs are gradually increasing the overall cost of new developments. This may lead to further increases in residential and commercial property prices, particularly in the island’s most sought-after locations.