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12° Nicosia,
24 May, 2024
 

Home building costs up by 20%, insights for buyers

Stelios Gavriel, President of the Federation of Building Contractors' Associations, addresses personnel shortages and offers buyer tips

Maria Eracleous

Maria Eracleous

Geopolitical developments, marked by conflicts in Ukraine and Gaza, have led to a notable surge in house prices, revealing a 20% increase in construction costs since 2019, according to Stelios Gavriel, President of the Federation of Building Contractors Associations. Speaking on SPOR FM and the DIASPORA NEWS show, Gavriel highlighted the impact of these events on the construction industry. Simultaneously, the adoption of automation systems in modern construction, particularly favored by young couples, contributes to the rising costs of home acquisition.

Addressing concerns of a potential 'overheating' in property construction, Gavriel dismissed such claims. He argued that the heightened demand is driving the industry, and in the case of increased property supply, rents are likely to decrease.

However, Gavriel underscored a significant challenge in the form of a shortage of staff, primarily affecting manual labor and, to a lesser extent, machine operators. This scarcity extends across various skilled positions within the construction sector.

Discussing the repercussions of the labor shortage, Gavriel pointed to delays in project delivery and the potential tarnishing of the positive reputation that Cypriot businessmen have maintained with investors. He emphasized the importance of adhering to contractual obligations with investors to uphold the industry's integrity.

In offering advice to potential homebuyers, Gavriel recommended selecting energy-efficient buildings (energy class A) equipped with automation systems, now considered the standard, especially for young couples.

[This article was translated from its Greek original and may have been edited for brevity]

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Cyprus  |  economy

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