Building a new house today means that costs could rise by up to €20% now that prices for building materials on the island have skyrocketed.
Prices increased in April by 5.3% compared to last year primarily due to the dynamics of prices in the world market in which the Cyprus construction sector is deeply integrated.
The share of rolled metal in the price per square meter is up to 10%, while steel prices jumped from €450 per ton a few months ago to €780 per ton. In general, the increase of some building materials is as high as 70%.
At the same time, the rise in prices for building materials has eaten away a significant part of the profit that local developers were counting on.
There is no doubt that a further rise in the cost of building materials will have a negative impact on the real estate sector and may further lead to higher prices for new buildings.
Plus, a number of developers are likely to raise prices for apartments and houses by an average of 10-15%.