The Cyprus Statistical Service has published data on changes in the prices of building materials in January.
According to the service's report, their prices started to rise again.
In particular, the price index for building materials reached 117.6 points (based on 2015 = 100), an increase of 0.57% compared to the previous month and 0.5% compared to a year ago.
The largest increases in January 2025 were recorded in mineral products (+1.77%), wood, insulating materials, chemical and plastic products (+1.04%), minerals (+0.81%) and electromechanical goods (+0.62%), while a decrease in prices was recorded in the metal products segment (-1.21%).
It should be remembered that the price index for construction products reflects the change in the prices of construction projects of different types of economic activity.
The increase in the cost of building materials used in residential construction on the island is mainly related to price dynamics on the world market, in which the Cypriot construction sector is highly integrated. This may point to a further increase in house prices.
At the same time, the increase in the cost of building materials often affects the mortgage loans of individuals and companies. In many cases, the money secured by the construction loans turns out to be insufficient: all initial estimates are fundamentally altered. Borrowers are forced to go back to the bank to ask for an increase in the original loan amount. Banking institutions examine all cases of borrowers who return to them and try to determine whether the client will be able to withstand the additional financial burden and even larger loans.