Central Bank dispels property bubble fears

Central Bank dispels property bubble fears

Real Estate Thursday, 28 July, 2022

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

Christos Nikolaou

Author: Christos Nikolaou

BEng Mechanical Engineering, MSc Real Estate, ETEK Property Valuer, Register and Licensed Real Estate Agent.

Christos Nikolaou is the founder and Managing Director of Property Canvas, he holds a license as an Estate Agent from the Association of Real Estate Agents of Cyprus and he is a registered Property Valuer in the Technical and Scientific Chamber of Cyprus (ETEK). He is the author of our “Central Bank dispels property bubble fears” and is a certified advance negotiator.


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