Building material costs surge 10% in two months as Cyprus construction market adapts

Construction materials on Cyprus have risen 10 per cent over the past two months, and 35 per cent over five years—a significant blow to those planning to purchase or build property on the island.

Global factors are to blame: the conflict in Iran, the energy crisis, and rising oil prices. Iron, aluminium and steel—materials ubiquitous in construction—have seen the steepest increases. According to the statistical service, the construction materials price index reached 120.67 points in April 2026 (base year 2021 = 100). Electromechanical components rose 2.29 per cent, and metal products 1.81 per cent.

Despite the price increases, construction activity on Cyprus shows no signs of slowing. The market is expanding, particularly in Larnaca (+40 per cent) and Nicosia (+30 per cent). However, demand patterns are shifting: buyers are opting for compact apartments over large houses. This reflects not only price pressures but also new energy-efficiency requirements—solar panels, thermal insulation, and smart home systems. Whilst these upgrades carry higher upfront costs, utility bills subsequently decline noticeably.

Source: Cyprus Mail Property