Cyprus construction output grows as costs rise; EU activity rebounds

Nicosia, Cyprus. Construction output in Cyprus grew by 1.1 per cent in the second quarter of 2026 compared with a year earlier, while output prices increased by 4.9 per cent, according to the Statistical Service (Cystat). Separately, Eurostat reported that construction activity recovered in August across both the euro area and the European Union.

Material prices continue to increase in Cyprus

Cystat’s figures showed that the construction materials price index reached 123.41 points in September, using 2021 as the base year at 100. This represented an annual increase of 3.74 per cent and a monthly rise of 0.26 per cent.

For the January–September period of 2026, material prices were 2.24 per cent above their level in the corresponding period a year earlier.

Among the main categories, metal products registered the largest annual price increase, at 5.28 per cent. The category comprising wood, insulation materials, chemicals and plastics recorded a rise of 5.06 per cent.

August recovery across Europe

Eurostat said construction production increased month-on-month by 1.8 per cent in the euro area and by 2 per cent in the EU during August. The gains followed July’s more modest results: a 0.2 per cent increase for the euro area and a 0.1 per cent decline for the EU.

Against August 2025, output was higher by 1.4 per cent in the euro area and 2.6 per cent in the EU, the statistical office reported.

Specialised activities lead monthly gains

Eurostat’s sector breakdown showed a 2.5 per cent monthly increase in specialised construction activities within the euro area. Building construction, however, contracted by 0.4 per cent, while civil engineering fell by 2.1 per cent.

For the EU, specialised construction activities expanded by 2.3 per cent. Building construction decreased by 1 per cent, and civil engineering slipped by 0.2 per cent.

Among member states for which figures were available, Hungary posted the largest monthly gain, at 14 per cent. Germany followed with 9.3 per cent, ahead of Romania at 7.2 per cent, according to Eurostat.