Prices for Building Materials Skyrocketing in Cyprus

Indicatively to mention that based on the latest data of the Statistical Service, the price index of construction materials on an annual basis showed an increase of 14.37%, with the largest increases being presented in metal products (31.27%), in products from wood, insulation, chemicals and plastics (12.93%), electromechanical articles (11.02%), minerals (2.55%) and mineral products (1.26%).

The housing market

Speaking to market participants, it already seems that the sales prices of new apartments and houses in general show an increase of 20%, on average, compared to the same period last year. This was also confirmed by the executive director of Yiatros Group Miranda Giatrou regarding Limassol. "There is an increase in the selling prices of apartments, but also in all new housing units, due to the increase in the prices of building materials, and this increase ranges on an annual basis from 10% to 20%," he said. The statements of another manufacturer were on the same wavelength, who stated that while two years ago the price of a one-bedroom apartment in Nicosia was around 85,000 euros, today it is around 115,000 euros. The builder listed three key points for the rise in house prices: First, the addition of 19% VAT on the land market, second, the imposition of 19% VAT on sales, and now the cost of building materials has been added. The third point is burning more the business world at the moment, but also the buyers-consumers themselves, who see their purchasing power being hit.

Cost absorption

The issue of prices for construction materials has two aspects. One concerns constructions with private contracts and the other concerns constructions with public contracts. As the president of the Federation of Builders of Cyprus, Mr. Stelios Gabriel, told "P", in private contracts until today, the cost of increasing the prices of raw materials was absorbed by the manufacturer. However, so far, as Mr. Gabriel claimed, in the existing constructions the cost has not been passed on to the final buyer. It was shouldered by the manufacturer. However, the assessment of the president of OSEK is that we will soon see a transfer of costs to new constructions.

10% on the cement

Meanwhile, in another development, as we are informed, since October 1, Vasilikos Cement Factories have informed their customers that they are proceeding with an increase of 10% per tonne in the sale of cement."We were the last link in the chain in terms of the construction sector that we proceeded to increase. We expected to see how the situation would develop and then to make the decision", a company source told "P". The same source explained that due to the significant increase in the price of coal, which is a major product for cement production, from $ 85 to $ 185, the cost of cement production also increased sharply. Therefore, it is understood that this will lead to even greater increases and problems in the cost of the manufacturer, but also in the prices of the final product.