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23rd May 2022
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HomeProperty StatisticsSpiralling building materials costs set to continue

Spiralling building materials costs set to continue

According to the Cyprus Statistical Services, the price of building materials rose by 17.1% in December 2021 compared to the December 2020, increasing the pressures on the construction and property sectors that are trying to recover from the impact of the COVID-19 pandemic.

The abrupt cancellation of Cyprus’ infamous ‘Golden Passport scheme‘ in November 2020 and the termination of the Cyprus government’s interest rate subsidy scheme, which ran until the end of 2021, is putting added pressure on the island’s construction and property sectors.

Compared to the same month of the previous year, the Cyprus Statistical Service reports increases in metallic products of 30.17%, products of wood, insulation materials, chemicals and plastics (+19.04%), electromechanical products (+13.02%), mineral products (+5.41%) and minerals (+4.75%).

Cyprus building materials price index December 2021

The increase of the construction materials index in 2021 over the previous year is mainly due to increase in the prices of:

  • Structural steel +46.56%
  • Building iron +44.34%
  • Copper pipes +32.78%
  • Steel pipes +32.69%
  • Iron rails +30.28%
  • Structural grid +27.06%
  • Bitumen asphalt +26.54%
  • Wires and cables +24.64%
  • Raw +sawn timber +22.71%

Shortage of materials set to continue

Construction material shortages and price hikes are set to continue with news that China will close 64 cities in the north of the country to improve air quality in the build up to the Beijing Olympics in February.

Delays at shipping ports expected to last until the third quarter of 2022 at least. China has 7 of the 10 largest container ports, which close when workers test positive for COVID-19. (China has a “zero COVID” policy that enforces strict lockdowns and immediate mass testing.)

Last August, Jason Chiang from Ocean Shipping Consultants told the BBC that the global shipping industry is likely to feel the impact of the pandemic for several more months.

“We don’t expect to see any new shipping capacity until two years down the road. So everything between now and two years will be dependent on how the pandemic plays out,” he said.

Further reading

Press release – Price Index of Construction Materials: December 2021

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