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Alarm bells sound from Cyprus as building costs jump

Building officials in Cyprus estimate that the cost of constructing a home has risen some 20 percent recently, with some builders refusing to complete contracts unless they are covered for the price hikes.

The higher costs are adding to upward price pressures in the housing market on the island as demand rebounds from pandemic lows.

Across Europe and the US, rising transport and metals costs seen in the last few weeks are posing a threat to residential housing markets as the economic rebound triggers a building boom.

Industry executives have even warned that higher prices and shortages of

building materials risk undermining the EU’s 800 billion euro economic stimulus program due to the large number of infrastructure projects involved. Construction accounts for some 10 percent of the region's total economic output.

In Cyprus, the head of the Federation of Construction Contractors Associations of Cyprus (OSEOK), Stelios Gravriil, told that higher input prices have boosted home construction costs by an estimated 15-20 percent.

The costs of some imported building materials, such as copper and timber, have soared by as much as 70 percent since the start of the year, he added.

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