For the second consecutive month, the price of construction materials surged in August 2021 compared to August 2020, recording an annual increase of 14.37% according to data published by the Cyprus Statistical Service.
Crucial inputs such as steel, cement, sand, stone aggregates and wood-oriented materials have seen a price increase in the last one year, pushing up the overall building costs.
Compared to August 2020, increases were noted in:
- Metallic products (31.27%) including iron and steel (47.42%)
- Wood, insulation materials, chemicals and plastics (12.93%)
- Electromechanical products (11.02%)
- Minerals (2.55%) including Cements (5.36)
- Mineral products (1.26%)
The Cyprus Statistical Service notes that “Prices of materials used in construction are collected on a monthly basis based on a sample of products and suppliers. The reference date for the prices collected is the 15th each month. Prices are valued excluding VAT. The data collection is carried out by telephone, fax or e-mail. Prices of materials are based on actual prices rather than list prices.”
In addition to building materials, transport costs have also risen with the price of crude oil rising approximately 80% since October 2020. Oil is essential to the industry since the manufacturing of the building materials, their transportation and the construction site machinery operation all depend on oil.
Construction costs – further reading
Press release: Price Index of Construction Materials: August 2021