Construction buffered by soaring prices

Activity in construction declined in the first three months to March amid soaring prices, indicating the Cyprus economy is slowing.

In the first quarter of 2022, the Index of Production in Construction, an indication of the growth rate of construction, declined to 175.4 units (base year 2015=100), recording a 6.6% decrease over the 12 months.

The index registered annual losses for the third consecutive quarter.

By type of project, a 7.1% decline was observed for buildings and a 3.4% dip for civil engineering projects compared to Q1 2021.

Prices

According to Cystat, the Output Prices Index in Construction for Q1 2022 rose to 124.90 units (base year 2015=100), recording a significant increase of 10.1% year on year.

Compared to the previous quarter (Q4 2021), the index rose by 3%; the fifth consecutive quarter, it went up.

By type of project, an increase of 11.7% was observed for buildings and 4.8% for civil engineering projects compared to last year.

The index shows the change in the overall cost of construction work incurred by the client, including materials, labour, energy, transport and the profit made by the contractors.