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