The cost of building materials is going higher and higher since November 2020 and the war in Ukraine has made the situation even worse as obstacles for international trade increase.
In fact, Central Bank of Cyprus (CBC) figures show that the annual cost of building materials has gone up by 17.3% in March compared to last year.
This means that many buildings under construction will most probably remain unfinished since the calculated costs were different from the ones recorded today.
The continuing increase in the cost of purchasing building materials starts to also affect mortgages of individuals and legal entities in the construction industry.
In many cases it turns out that the money secured through loans for construction is not enough, compared to the initial estimates of households and land borrowers, forcing borrowers to knock on banks’ doors again to ask for an increase in the original loan amount.