Cypriot construction costs rising at 4.7% annually, outpacing sector growth

In the first quarter of 2026, construction output on Cyprus grew by just 0.7% year-on-year—seemingly stable. Yet prices tell a different story. The construction price index surged 4.7% annually and 3% in the quarter alone.

What does this mean for buyers? If you are planning to purchase property on Cyprus or are already building, materials and labour are becoming significantly more expensive than demand for new housing is growing. Developers are passing costs on to clients, meaning prices for completed properties will continue to climb.

According to Cystat (Cyprus's state statistical service), the production index reached 120.74 points (2021 baseline = 100), whilst the price index hit 129.46 points. The divergence is stark: demand is growing slowly whilst costs are accelerating rapidly.

For those considering investment in Cypriot real estate, the signal is clear: prices will only rise with each passing quarter.

Source: Cyprus Mail Property