Rising prices of building materials – Cyprus property news
For the second month in a row, the price of building materials jumped in August 2021 compared to August 2020, registering an annual increase of 14.37% according to data released by the Statistical Service of Cyprus.
Essential inputs such as steel, cement, sand, stone aggregates and wood-based materials have seen their prices rise over the past year, pushing up overall construction costs.
Compared to August 2020, increases were noted in:
- Metal products (31.27%) of which iron and steel (47.42%)
- Wood, insulation materials, chemicals and plastics (12.93%)
- Electromechanical products (11.02%)
- Minerals (2.55%) of which Cements (5.36)
- Mineral products (1.26%)
The Cyprus Statistical Service notes that “the prices of materials used in construction are collected monthly on the basis of a sample of products and suppliers. The reference date for collected prices is the 15th of each month. The prices are evaluated excluding VAT. Data collection is carried out by telephone, fax or e-mail. Material prices are based on actual prices rather than list prices.
In addition to building materials, transportation costs have also increased, with the price of crude oil increasing by around 80% since October 2020. Petroleum is essential to industry as the manufacture of building materials, their transportation and the Operation of construction machinery all depend on oil.
Construction costs – further reading
Press Release: Building Materials Price Index: August 2021