According to the Cyprus Statistical Service, the Construction Materials Price Index stood at 119.04 points in July 2025 (base year 2021=100). Compared to June, there was a slight change of +0.01%. However, compared to July 2024, the index increased by 1.19% in annual terms.
Which materials became more expensive, and which became cheaper?
An analysis by main categories shows mixed dynamics. Mineral materials (+3.33%) and products from processed minerals (+3.27%) demonstrated the largest growth. Wood products, insulation, plastic materials, and chemical products rose moderately in price (+0.7%). Prices for electromechanical equipment rose slightly (+0.19%). Meanwhile, prices for metal products fell by 1.04%, partially offsetting the overall growth.
The trend for the first seven months of 2025
From January to July, the price index for construction materials increased by 1.24%, compared to the same period in 2024. This indicates stabilization of the market after the sharp price fluctuations observed in 2022–2023 due to a global shortage of raw materials, logistics issues, and rising energy prices.
Impact on the Construction Sector
The rise in material prices directly reflects the cost of housing construction and infrastructure projects. In the first half of 2025, the cost of constructing new residential complexes and commercial buildings increased by an average of 2–3%. This increase is due to rising raw material prices and higher wages in the construction industry. Experts note that lower metal prices may slow the growth of costs somewhat, but the overall trend remains upward.
Forecast for the coming months:
Analysts expect price dynamics to remain moderate in the second half of 2025. The main risks are related to fluctuations in global commodity markets and domestic demand in Cyprus. Domestic demand in Cyprus continues to grow thanks to the active development of residential projects in Nicosia, Limassol, and coastal regions, especially Paphos and Ayia Napa.