The price index of construction materials in Cyprus rose modestly in April, even as building activity continues to surge across the island, according to a report from the Cyprus Statistical Service (Cystat).

The index reached 120.67 units in April 2026, based on 2021 as the reference year, marking a monthly increase of 0.64 per cent.

On an annual basis, the index recorded a rise of 1.38 per cent, indicating a steady but contained increase in construction costs.

For the January to April 2026 period, the index increased by 1.00 per cent compared with the same period of 2025, pointing to gradual upward pressure on material prices.

The data showed that the most notable increases were observed in electromechanical products, which rose by 2.29 per cent year-on-year.

This was followed by metallic products, which increased by 1.81 per cent, and wood, insulation materials, chemicals and plastics, which rose by 1.76 per cent.

Further increases were recorded in minerals, up by 1.59 per cent, while mineral products saw a marginal rise of 0.06 per cent.

The index reflects the cost of construction materials incurred by contractors, offering a key indicator of cost pressures within the sector.

Cystat explained that the data is compiled through monthly price collection from a sample of products and suppliers, with prices recorded around the 15th of each month.

These prices are calculated excluding VAT and are gathered through direct communication with suppliers, including telephone and email surveys.

The index itself is constructed as a weighted average of material prices, with weights based on the relative importance of each material in total construction expenditure.

These weights are derived from import values and local production data for each material during the base year of 2021.

The moderate rise in construction material prices comes at a time when the sector is experiencing a significant expansion in building activity, driven by strong demand and investment.

Separate data from Cystat showed that building permits surged in January 2026, highlighting a robust pipeline of future projects.

A total of 789 building permits were authorised during the month, representing a year-on-year increase of 76.9 per cent.

The total value of permits reached €445.2 million, reflecting a sharp increase of 92.9 per cent compared with January 2025.

At the same time, the total covered area rose by 82.5 per cent, reaching 346,700 square metres.

The permits provide for the construction of 1,755 dwelling units, marking a 109.4 per cent increase and signalling strong momentum in residential development.

Taken together, the data suggests that while construction costs are rising gradually, the pace of building activity remains strong, supported by a growing pipeline of projects.

This dynamic points to a sector that is continuing to expand, even as input costs edge upwards, with potential implications for property prices and investment trends in the months ahead.