Slight Drop in Construction Costs
The Price Index of Construction Materials in Cyprus stood at 117.18 units in October 2024 (base year 2021=100). This reflects a 0.08% decline from the previous month, according to the Cyprus Statistical Service. The dip in October follows recent fluctuations, confirming that construction material prices fell in October.
Yearly Comparison: Some Prices Rise, Others Fall
Compared to October 2023, the index increased slightly by 0.13%. However, individual commodity categories showed mixed trends:
📈 Price Increases:
- Electromechanical products rose by 3.63%.
- Wood, insulation materials, chemicals, and plastics increased by 1.17%.
- Mineral products saw modest growth of 0.45%.
📉 Price Declines:
- Metallic products dropped by 2.12%.
- Minerals saw a slight 0.02% decline.
Year-to-Date Decline in Construction Costs
From January to October 2024, the overall index fell by 1.01% compared to the same period in 2023. This indicates a continuing trend where construction material prices fell in October, contributing to broader price reductions in the sector.
Factors Influencing the Price Dip
Several factors have contributed to the decline in construction material prices:
- Lower demand for new construction projects.
- Fluctuating global material costs, particularly for metals.
- Government policies encouraging price stabilization.
Experts suggest that the market may see further changes depending on global supply chain trends and local construction demand in the coming months.
Looking Ahead: What’s Next for Construction Costs?
While October’s price drop offers some relief for developers and builders, future prices remain uncertain. Analysts will monitor global material trends, inflation rates, and Cyprus’ economic outlook to predict potential cost changes in 2025.
Discover more property news and home advice by reading our other blogs on Properush.
Source: Cyprus Property News
