24/05/2004 15:48
According to CYSTAT data released on Monday, the price in construction materials for April 2004 showed an increase of 6.5% compared to the corresponding period of 2003. The price hike in the construction material for January – April 2004 reached 5.3%, while the construction materials index stood at 117.14 points in April against 116.35 points in March 2004.
The inflation in the price of construction materials is mostly attributable to the increased cost of oil products that surged 23.2% compared to the corresponding month of 2003, as well as the industrial products, the price of which recorded a sharp increase of 22%. The cost of timber, stones and quarry products showed an increase of 4.5%, while the price of chemical products surged 1.5%, due to the price hike in iron by 35%. These increases are expected to affect the island’s constructions sector.
Smaller residences?
The increased cost in the construction material together with the imposition of VAT on properties might affect the future demand for residences. Chairman of the Developers’ Association, Lakis Tofarides told StockWatch that the increase in the construction materials will force customers to look for smaller residences. “This will take time though”, Mr. Tofarides said.
General Secretary of the Cyprus Contractors Association, Angelos Constantinou told StockWatch that contractors cannot predict how the property market will react in the future due to the demand for constructions in Cyprus from overseas.
The inflation in the price of construction materials is mostly attributable to the increased cost of oil products that surged 23.2% compared to the corresponding month of 2003, as well as the industrial products, the price of which recorded a sharp increase of 22%. The cost of timber, stones and quarry products showed an increase of 4.5%, while the price of chemical products surged 1.5%, due to the price hike in iron by 35%. These increases are expected to affect the island’s constructions sector.
Smaller residences?
The increased cost in the construction material together with the imposition of VAT on properties might affect the future demand for residences. Chairman of the Developers’ Association, Lakis Tofarides told StockWatch that the increase in the construction materials will force customers to look for smaller residences. “This will take time though”, Mr. Tofarides said.
General Secretary of the Cyprus Contractors Association, Angelos Constantinou told StockWatch that contractors cannot predict how the property market will react in the future due to the demand for constructions in Cyprus from overseas.
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