Central Bank dispels property bubble fears
People wanting to buy a house in Cyprus are constricted by an upward trend in construction costs and materials, with the latest figures showing a 20% jump.
According to Cystat, the average cost of building a house in 2020 jumped by 19.91%, while buyers must expect to cover increases in the cost of construction materials that have risen over the past two years.
The average cost for a house in 2020 was €1,059 per square metre, while in 2010, the average construction price was €946.
Building an apartment was costed slightly lower with the price per sqm estimated at €992, while in 2010 it was €807 per sqm.
In essence, it means that building a 120 sq.m apartment at 2020 prices cost €119,040 and a 200 sq.m house was €211,800.
However, considering recent increases in the cost of building materials, house prices on the market are further inflated by 20% compared to 2020 estimates.
On Monday, CyStat issued its latest report on the Price Index of Construction Materials for June, which reached 134.30 units (base year 2015=100), recording an 0.93% increase compared to the previous month.
Annually, the index recorded an increase of 19.42%.
Increases were recorded in metal products (26.95%), wood, insulation materials, chemicals, and plastics (18.50%), minerals (15.11%) and electromechanical products (11.95%).
Source: Cyprus Property News
Author: Property Canvas
ETEK Property Valuers, Registered and Licensed Real Estate AgencyProperty Canvas is a leading real estate agency in Cyprus, specializing in property sales, investment, and valuation. Our team comprises licensed estate agents and certified property valuers with extensive experience in the Cypriot market, providing expert guidance to buyers, sellers, and investors. Our Team has authored the “Central Bank dispels property bubble fears”.
