The construction sector in Cyprus continued to expand in the second quarter of 2025, with both production and output prices recording robust annual increases, according to new data from the Cyprus Statistical Service (Cystat).

The Index of Production in Construction reached 131.38 units during the second quarter of 2025, with 2021 acting as the base year set at 100 units.

This marks an increase of 4.6 per cent compared with the same period in 2024.

Cystat also stated that the Output Prices Index in Construction climbed to 126.32 units (2021 again acts as the base year 2021 with a value of 100 units) in the second quarter of 2025, representing an increase of 2.1 per cent relative to the first quarter of the year.

When compared with the second quarter of 2024, output prices rose by 5.4 per cent, indicating sustained price pressures in the construction industry.

For the first half of 2025, the Index of Production in Construction increased by 3.7 per cent year-on-year, while the Output Prices Index grew by 4.9 per cent over the same period.

Cystat explained that the quarterly Index of Production in Construction serves as a key tool for monitoring short-term developments in construction activity.

It is a volume index that approximates changes in value added at constant prices and can therefore be considered as an indicator of the growth rate of construction relative to a specific reference year, the base year.

The Output Prices Index, meanwhile, measures changes in unit prices charged to clients for construction work, reflecting overall cost variations including materials, labour, energy, and transport, as well as contractor profit margins.

According to Cystat, this index can be seen as an indicator of price inflation in construction, providing a measure of how much the cost of building has changed relative to the base year.

Both indices, Cystat said, are critical in assessing economic performance, inflationary trends, and competitiveness within Cyprus’ construction sector.