Cyprus construction-material inflation reaches 3.39% as the housing pipeline expands

Cyprus’s construction-cost backdrop continued to firm in August. CYSTAT’s Construction Materials Price Index reached 123.09 points, with 2021 equal to 100. The index was almost unchanged from July, rising 0.07% month on month, but its annual increase reached 3.39%.

The pressure is broad rather than confined to one input. Metal products were 4.60% more expensive than a year earlier, as were wood, insulation, chemical and plastic products. Electromechanical items rose 3.58%, minerals 2.67% and mineral products 1.35%.

The timing matters because Cyprus is simultaneously building a much larger housing pipeline. CYSTAT reported that planned dwelling units authorised in January–May 2026 were 63.7% above the same period of 2025. Faster supply growth can eventually ease housing shortages, but rising material costs may narrow developer margins, raise required sale prices or slow projects whose economics were already tight.