An analysis of construction costs in Cyprus reveals that hotels are the most expensive buildings to construct per square metre, significantly outpacing other commercial and residential properties, according to new data from the Statistical Service.
The report, which examines the average cost for privately developed buildings completed in 2023, shows that medical clinics and tourist apartments rank as the second and third most costly projects, respectively. The official figures are calculated by dividing a project’s total construction cost by its total floor area.
Discrepancy Between Official Data and On-Site Costs
While the government statistics provide a baseline, industry professionals caution that these figures often underestimate the true expenses faced by developers and homeowners. This is because the data excludes the value of the land, developer profit margins, and other ancillary costs.
For 2025, construction experts estimate that the realistic cost to build a new house or apartment now ranges between €1,700 and €2,500 per square metre, not including the price of the land. This estimate is considered a more accurate reflection of on-site costs, covering essential external works and finishes. Industry sources suggest that any cost quoted below the €1,700 per square metre threshold is likely to be an incomplete estimate that excludes necessary components.
Factors Influencing Construction Costs
The Statistical Service notes that the official data can be influenced by several variables, making year-on-year comparisons challenging. Factors such as the size of a project, its location, the quality of materials used, and the level of luxury can all cause significant cost fluctuations.
The official calculation of construction cost is comprehensive, covering architectural and engineering fees, urban planning and permit expenses, labour and material costs, contractor service fees, and applicable VAT. However, the exclusion of land value remains the most significant difference between the statistical data and the final price paid by a consumer.
Source: Cyprus Property News