According to the latest data of the Statistical Service of Cyprus, published on Thursday, November 18, prices for construction materials in the country increased by 16.99% in October 2021 compared to the last year.
The construction materials price index reached 117.95 points in October 2021 (compared to 2015 = 100.00), an increase of 1.87% compared to the previous month.
As you may know, the price index of construction products reflects the change in prices in the construction of objects of various types of economic activity.
The largest increase in the prices of building materials was recorded in the following categories:
- metal products - by 32.35%,
- wood products, insulation materials, chemicals and plastics - by 17.51%,
- mineral resources - by 5.61%,
- electromechanical products - by 11.68%,
- mineral products - by 4.31%.
It should be noted that the increase in the cost of building materials used in housing construction on the island is primarily due to the dynamics of prices on the world market, in which the construction sector of Cyprus is deeply integrated, as well as the economic consequences of the pandemic.
To revive the economy after the lockdown, many governments have decided to stimulate a number of industries through the use of reserves. One of the most popular options for such support is investments in infrastructure development and construction. This led to a rapid increase in demand and, as a result, an increase in prices for metals and other commodities.
The growth in demand for real estate, combined with an avalanche-like increase in prices for building materials, greatly destabilized the construction industry of Cyprus.
Local developers refuse to make forecasts, except for one thing - prices for new buildings, which have already soared in different segments by 15-20%, will continue to grow.