Cyprus construction costs hit record high in 2025

According to Eurostat data, the price index for residential building construction has risen to 118 points — 18% above 2021 levels. For context, the index stood at 90.2 in 2015, meaning prices have climbed nearly 31% over the decade.

Cyprus is not alone in this trend. Across the EU, residential construction costs have increased by 48.2% over the same ten-year period. However, whilst 2022 saw explosive growth of 12.2% annually, the pace has since moderated. In 2025, prices rose just 2% year-on-year.

Notably, Cyprus appears relatively restrained compared to the broader EU picture. Bulgaria has seen residential construction costs surge by 166%, whilst Hungary has experienced a 155% increase. Greece and Italy, by contrast, have recorded minimal growth of 17–17.3%. Cyprus, at 31%, sits somewhere in the middle.

The price increases reflect pressure from rising labour costs, material expenses and broader inflationary pressures. For investors, the message is clear: if you have been considering a project on the island, further delay is no longer advisable.

Source: Cyprus Mail Property