On Wednesday 19th March the Cyprus Statistical Service published data on the change in the prices of construction materials for February.
According to the service's report, as of January, their prices continued to rise.
Specifically, the price index for building materials reached 118.56 points (based on 2015 = 100), an increase of 0.82% compared to the previous month and 1.38% compared to a year ago.
The largest increases in February 2025 were for mineral products (+3.04%), wood, insulation materials, chemical and plastic products (+0.84%), minerals (+3.09%), and electromechanical products (+1.85%). On the other hand, there was a decrease in the metal products segment (-0.74%).
In turn, from January to February 2025, the index recorded an increase of 0.94% compared to the corresponding period of 2024.
It should be recalled 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 in the global market, in which the construction sector in Cyprus is highly integrated. This may point to further increases in house prices.
At the same time, the increase in the cost of building materials often has an impact on 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 the 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.