Nicosia, Cyprus. Construction costs in Cyprus have risen by 10 per cent over the past two months, while the increase over five years has reached 35 per cent, according to Cyprus Federation of Building Contractors Associations president Stelios Gavriel. He said higher energy prices, geopolitical developments in Iran and the cost of emissions allowances were contributing to the increase.
Cost pressures on materials
Gavriel told the Cyprus News Agency that the increases are linked to geopolitical developments in Iran, rising energy prices and the higher cost of emissions allowances affecting raw material industries.
He said the materials most affected are iron, aluminium and steel, which have come under notable price pressure.
April index data
According to the statistical service, the construction materials price index for April 2026 stood at 120.67 units, with 2021 as the base year at 100. This represented an increase of 0.64 per cent compared with the previous month.
Compared with April 2025, the index rose by 1.38 per cent, indicating continued upward movement across the sector.
Category increases
By main product category, the statistical service recorded increases of 2.29 per cent in electromechanical goods, 1.81 per cent in metal products, 1.76 per cent in wood, insulation, chemical and plastic products, 1.59 per cent in minerals, and 0.06 per cent in mineral products.
For the January to April 2026 period, the index increased by 1 per cent compared with the same period in 2025.
Iron and steel products
The statistical service also reported that iron and steel products rose by nearly 2 per cent compared with the previous month, while aluminium products posted a slight increase.
Impact of wars and energy prices
Gavriel said the rise in construction costs began with the crisis caused by the war in Ukraine and the subsequent energy crisis, and is continuing with the war in Iran and the increase in oil prices.
He said these factors are not helping reduce costs and are instead keeping them at high levels.
