Building materials are rising sharply in Cyprus, pushing up housing prices

A new wave of pressure is being recorded on the Cypriot property market: the cost of building materials has risen by 10% in just two months and by 35% over the past five years, inevitably leading to higher prices for completed apartments and houses. According to the president of the Cyprus Federation of Building Contractors Associations (OSEOK), Stelios Gavriil, this trend, which began due to the conflict in Ukraine and the energy crisis, continues amid geopolitical tensions in the Middle East and rising oil prices. Iron, aluminum and steel are becoming particularly more expensive, while an additional pressure factor is the increase in the cost of carbon emission allowances, which is hitting raw material producers; official statistics confirm that in April 2026 the building materials price index reached 120.67 points.

Despite rising costs, activity on the market remains high across the island: sales in Larnaca have jumped by about 40%, in Nicosia by around 30%, while Limassol and Paphos are also showing positive dynamics. Strong demand in the capital is explained by interest from local buyers and foreign investors, attracted by more affordable prices and a high concentration of business activity. At the same time, the sector is facing a severe labor shortage due to experienced specialists leaving, which reduces productivity and increases costs, forcing developers to partially bring in workers from third countries to contain expenses.

In the conditions of high construction costs, the market is adapting to the new reality, and buyers are increasingly preferring smaller apartments and flats with strict energy-efficiency requirements. Modern residential complexes with energy class A, equipped with thermal insulation, solar panels and smart home systems, are more expensive at the purchase stage, but allow for significant reductions in operating costs in the long term.