The construction sector is traditionally considered one of the key indicators of economic health. In August 2025, Cyprus saw a rise in the cost of construction materials. According to the Statistical Service, the Construction Materials Price Index reached 119.06 points (base year 2021=100), reflecting a 1.17% increase compared to August 2024. Compared to July 2025, the index rose only slightly — by 0.01%, indicating price stabilization after spring and summer fluctuations.
Which Materials Became More Expensive?
The largest increases were observed in mineral materials and processed mineral products, which rose by 3.2% and 3.24%, respectively. Construction stone went up by 6.36%, and cement-based products by 3.71%. Ceramics increased by an average of 1.66%, while insulation materials rose nearly 2.75%, reflecting growing demand for energy-efficient construction. Among wood materials, prices rose 0.44%, and in the plastics and chemical products category, prices grew between 0.48–0.79%.
Where Prices Fell
Not all construction materials increased in price. Metal products, traditionally linked to global steel prices, fell by nearly 2.02%, particularly iron and steel items. Meanwhile, aluminum and other metal structures became more expensive by 1.31%.
The engineering equipment segment showed mixed trends. Electrical materials and components increased by 1.85%, and additional elements by 2.67%, but heating and air conditioning equipment dropped by 5.59%, likely due to seasonal summer demand decline.
Long-Term Trends
From January to August 2025, the Construction Materials Price Index rose 1.23% compared to the same period in 2024. This reflects a gradual increase in construction resource costs, which directly affects the price of residential and commercial projects.
Experts note that rising prices for energy-efficient materials — such as thermal insulation and modern construction mixes — mirror the global trend toward sustainability and reduced building energy consumption.
Implications for the Real Estate Market
Moderate increases in construction material prices may impact the cost of new projects, particularly in the housing sector. However, lower prices for metal products and engineering equipment partially offset increases in other categories.
Analysts predict that in the coming months, prices will remain largely stable, with potential localized spikes due to raw material market changes and logistical factors. Investors and developers should consider these fluctuations when planning projects and budgets.