Construction Costs Has Increased in Cyprus

RaftisGroup

RaftisGroup

Paphos-focused real estate developer since 1975

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Some statistics show that construction costs have increased noticeably in Cyprus as an aggregated category. The Cyprus Statistical Service(CyStat) has recorded a price increase of 7.71% while metals showed the biggest leap with an increase of 17.22%, followed by wood, insulation materials, chemicals, and plastics. Concerns have been expressed by Ο.Σ.Ε.Ο.Κ – Association of Cyprus Construction Contractors regarding the rise in construction material prices.

This situation as a whole was caused by the slowing down of national trading routes, processes, as well as production of materials due to the world wide pandemic of COVID-19 effects. The current situation we are facing at the moment is that the construction cost has increased approximately by 6%–10% overall due to the price increase of materials.

At the moment in Cyprus, the increase in construction costs is bearing upon the developers, but it is only a matter of time for the increase in construction costs to be transferred to the new housing property prices that are being currently built. The developers are not able to bear the new cost, so it’s only natural to see the prices drive up by 5%–10% and adjust in parallel with the slow but steady increase in demand, as it is adjusting to the new post-lockdown era. As more and more countries loosen up their restrictions more and more people go back to the old rhythms of life.