Cyprus construction costs see modest rise as material prices creep up

Construction materials prices in Cyprus recorded a modest increase in February 2026, reflecting gradual cost pressures in the sector, according to a report from the Cyprus Statistical Service (Cystat).

Specifically, the price index of construction materials reached 119.28 units in February 2026, based on 2021 as the base year, indicating an upward trend in building input costs.

On a month-on-month basis, the index rose by 0.33 per cent compared with January 2026, showing a slight increase in prices.

On a year-on-year basis, the index increased by 0.60 per cent compared with February 2025, pointing to moderate annual growth.

By category, electromechanical products recorded the largest increase at 2.27 per cent, followed by products of wood, insulation materials, chemicals and plastics, which rose by 1.64 per cent.

At the same time, minerals increased by 0.94 per cent, contributing further to the overall rise in construction material costs.

In contrast, metallic products declined by 0.45 per cent, while mineral products registered a slight decrease of 0.08 per cent.

For the first two months of the year, the index increased by 0.84 per cent compared with the same period of 2025, indicating a steady upward trajectory in early 2026.

The index reflects the evolution of construction material costs incurred by contractors, providing a key indicator of price developments in the construction sector.

Cystat explained that data on construction material prices are collected on a monthly basis, based on a sample of products and suppliers.

The reference date for price collection is the 15th of each month, ensuring consistency in the data.

Prices are recorded excluding VAT, offering a clearer view of underlying cost movements.

The data collection process is conducted through telephone or email communication with suppliers, ensuring regular updates.

The index is compiled using 2021 as the base year, meaning that all price movements are measured relative to average prices during that year.

In the base year, the average of the index across the twelve months is set at 100 units, providing a benchmark for comparison.

For example, an index value of 101.56 indicates that prices have increased by 1.56 per cent compared with their 2021 average, illustrating how changes are calculated.