Fresh quarterly indicators from Nicosia point to a deceleration in development momentum as production growth drops below one percent, weighed down by a sharp, compounding escalation in industrial materials and labor pricing.

Deceleration Patterns in Regional Structural Work

Cyprus' construction sector recorded modest growth in activity during the first quarter of 2026, while construction prices continued to rise at a faster pace, according to data released on Monday by the Statistical Service of Cyprus. The Index of Production in Construction reached 120.74 points (2021=100) in the January-March period, marking a 0.7% increase compared with the first quarter of 2025.

Contraction of Historic Sector Momentum

The figures indicate that construction activity continued to expand, albeit at a significantly slower pace than the 5.2% annual growth recorded for 2025 as a whole.

Intensifying Financial Burdens for Local Developers

At the same time, cost pressures in the sector remained elevated. The Output Prices Index in Construction rose to 129.46 points during the first quarter, up 4.7% from the corresponding period of 2025 and 3.0% higher than in the fourth quarter of 2025.

Source: CNA(ΚΥΠΕ)