According to the Cyprus Statistical Office, the industrial producer price index reached 110.0 points in August 2021 (2015 base = 100), up 0.2% compared to July 2021 and 11.2% during the year.
From January to August 2021, the index rose by 3.6% compared to the same period of 2020.
In August 2021, the indicator remained stable in the mining, quarrying and electricity sectors, but there was an increase of 0.3% in the water supply and material recovery sectors, as well as 0.2% in the manufacturing sectors.
Compared to the same month of the previous year, growth was observed in all sectors: electricity supply - by 37.4%, water supply and extraction of materials - by 28.4%, processing sector - by 4.5% and mining - by 1.1%.
In the sectors of the manufacturing industry, compared to the same month of the previous year, growth was recorded in August in all types of economic activities, the most significant growth was in the woodworking industry (22.4%), production of basic metals and metal products (19, 8%), the production of rubber and plastic products (3.8%), as well as in the sector of other non-metallic mineral products (3.1%).
As you may know, earlier the index of producer prices in construction also increased significantly in Cyprus.
The producer price index covers all stages of production: raw materials, intermediate stages, finished goods, as well as all other sectors. The rise in the producer price index may be a harbinger of another rise in property prices.
There is no doubt that this trend will have a negative impact on the Cyprus property market. A number of developers were already forced to raise prices for new buildings by 10-15% due to a sharp rise in prices for building materials.
You can find profitable options for buying real estate in Cyprus on the DOM Real Estate portal. The website also has a large number of rental properties - both residential and commercial real estate. Choose and contact professionals who will help you make the right choice.