New data shows that the financial burden on property buyers and developers in Cyprus continued to climb during the first quarter of 2026, even as actual construction volumes slowed to a near-flatline.
According to a report issued by the Statistical Service of Cyprus (CYSTAT), significantly high price inflation is outpacing the sector’s physical productivity gains.
Key Index Performance (January–March 2026)
| Economic Indicator | Q1 2026 Level | Quarterly Change (vs. Q4 2025) | Annual Change (vs. Q1 2025) |
| Construction Output Prices | 129.46 points | +3.0% | +4.7% |
| Construction Production Volume | 120.74 points | — | +0.7% |
Price Pressures vs. Slowing Momentum
The data highlights a distinct shift in market dynamics. While building costs face sustained upward momentum—jumping 4.7% compared to the first quarter of last year—the physical output of the industry has hit a major speed bump.
The minor 0.7% annual uptick in building production reveals a drastic deceleration when contrasted with the robust 5.2% expansion achieved across the entirety of 2025. Concurrently, contractors and clients are absorbing rapid short-term price hikes, with overall construction project costs climbing 3.0% in just the three months since the final quarter of 2025.
Source: Stockwatch.com.cy