Cyprus’ construction sector posted modest growth at the start of 2026, while construction costs continued to rise at a faster pace, according to figures released by the Statistical Service of Cyprus (Cystat).
Production Growth Remains Tepid
The Index of Production in Construction, based on 2021 as the reference year, reached 120.74 points in the first quarter of 2026, up 0.7% compared with the same period a year earlier.
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The data indicate that construction activity continued to expand during the quarter, albeit at a moderate pace.
Output Prices Continue To Advance
Price pressures remained stronger than output growth. The Output Prices Index in Construction rose to 129.46 points in the first quarter, increasing 3.0% from the previous quarter and 4.7% year on year.
The figures suggest that construction costs continued to rise despite relatively modest gains in overall production.
Activity And Costs Continue To Diverge
Taken together, the latest Cystat data point to a sector where prices are increasing more quickly than construction activity. While output continued to grow in early 2026, the pace remained considerably slower than the rise in construction prices.
