Cyprus construction prices rise 4.9% as output grows just 1.1%

The latest Cyprus construction statistics show prices increasing considerably faster than the volume of building activity. The Statistical Service reported that the output-price index for construction reached 132.48 in the second quarter of 2026, an annual increase of 4.9%. Over the same period, the production index reached 130.28, only 1.1% above its level a year earlier. Both indexes use 2021 as a base of 100, but they measure different parts of the sector and must not be compared as if they were identical quantities.

The price trend also continued within the year. Construction output prices increased 2.5% from the first to the second quarter. For January through June, their average annual increase was 4.7%, while construction production grew 1.4%. The divergence suggests that higher prices charged for construction work are an important feature of the current market, even when growth in physical activity is modest.

Cystat defines output prices as amounts charged to clients for construction work, incorporating materials, labour, energy, transport and contractors' profit. This is not the same as a residential house-price index or a measure of apartment sales. Buyers and developers should therefore view the figures as construction-sector context rather than proof that every new apartment has become 4.9% more expensive or that a specific project has changed its budget.