The construction landscape of Nicosia in 2025 is defined by a rigorous transition toward high-performance, sustainable residential units that balance architectural aesthetic with strict European structural and energy mandates. This project, a new three-bedroom ground-floor residence located in the suburban district of Lakatamia, serves as a primary case study for understanding the economic pressures and competitive dynamics currently shaping the Cypriot real estate market.

The project was subjected to a competitive tendering process through the Projects.cy platform, attracting five distinct contractor offers ranging from a low of €308.000 to a high of €340.474 (excluding VAT), providing a unique dataset for cost variance analysis in a period marked by a 5,4% increase in the Output Prices Index for construction.

Preliminaries

The Preliminaries chapter serves as the administrative and logistical foundation of the project budget, encompassing non-structural costs that facilitate the safe and efficient execution of the works. This category accounts for approximately 7% of the total construction cost, with contractor bids showing a staggering variance from €12.100 in Offer 3 to €33.850 in Offer 4. This disparity is driven primarily by the varying intensities of site management and the quality of logistical support each contractor provides. Under the E2(A) Form of Contract, these costs include mandatory insurances—Employer's Liability, Public Liability, and Contractor's All Risk—which alone can range from €200 up to €900 depending on the contractor’s premium rates and risk assessment.

Beyond insurance, this section covers the mobilization of site offices, temporary fencing (budgeted at €300 to €600), and site signage for the architect and consultants. The inclusion of a Waste Management Plan (€250-€900) and a Health and Safety Plan (€450-€600) reflects the heightened regulatory scrutiny of the District Local Government Organisations (DLGOs) in 2025. The heavy allocation for "Site Management Expenses" in Offer 4 (€15.000) vs. Offer 2 (€1.000) suggests a major difference in project supervision philosophy, where higher preliminary costs are often front-loaded to prevent structural delays or safety lapses that could prove more costly in later phases.

Excavations and Earthworks

The Excavations and Earthworks phase for the Lakatamia site illustrates the high sensitivity of construction budgets to Nicosia’s varying soil conditions and the logistics of debris management. The project requires the excavation of approximately 240m³ under the main residence and an additional 12m³ for the storage facility, with a total chapter weight of 4% of the project budget. Unit rates for bulk excavation show a significant spread, from €8 or €9 per m³ (Offers 1 and 5) to as high as €32 per m³ (Offer 4), a divergence likely rooted in the contractors' differing interpretations of the geological strata or their specific machinery capacity.

Soil removal and disposal is another critical cost cluster, where the transport of 267m³ of excavated material ranges from €4 to €20 per m³, highlighting the impact of landfill gate fees and fuel costs, which have been influenced by a 3,65% surge in mineral product prices in 2025. Furthermore, the placement and compression of "Crusher Run" for foundation stability—covering 115m³ for the house—is priced between €25 and €35 per m³. Contractors who own their own hauling fleets (or have secured favourable agreements with licensed waste management facilities) demonstrate significantly more competitive pricing in this category, as evidenced by Offer 5’s total of €8.051 compared to Offer 4’s €19.714.

Concrete Works

The Concrete Works chapter constitutes 10% of the total investment, representing the primary structural skeleton of the residence. The design utilizes two main concrete grades: C12/15 for lean concrete (blinding) and C30/37 for structural elements, reflecting modern seismic reinforcement codes in Cyprus. The raft foundation (koitostrosi) for the house is the largest single concrete application, requiring 135m³, with unit rates largely stabilized between €100 and €125 per cubic metre across all bidders. Offer 4 provided the most competitive rate at €100 per m³, while Offer 1 and Offer 3 favoured €125 and €120 respectively.

Beyond the foundation, the residence requires 43m³ for slabs and beams, plus 9m³ for columns, where consistent unit pricing suggests a transparent market for ready-mix supply in the Nicosia district. A specialized sub-section involves the independent entry steps, priced between €120 and €600 depending on the height and configuration, emphasizing the labour-intensive nature of decorative concrete casting compared to bulk structural pouring. The total chapter cost for concrete ranges from €27.710 to €34.181, a variance that is relatively narrow compared to other trades, underscoring concrete as one of the more commoditized and predictable aspects of the project.

Formwork

Formwork is a labour-heavy trade that represents 6% of the total project budget, involving the temporary moulds required for all structural concrete elements. The complexity of the fence walls (requiring 213m² of formwork) and the main house slab (170m²) are the primary cost drivers. Unit rates for vertical wall formwork vary from €20 to €28 per m², while slab formwork (horizontal) is quoted at €18 to €28 per m². The total for this chapter ranges from €18.002 in Offer 1 to €25.291 in Offer 3, indicating a 40% variance that highlights the subjective nature of labour efficiency estimates and timber reuse assumptions among contractors.

An important distinction in this chapter is the treatment of "Stithaia" (parapets); those under 50cm in height are priced linearly (€15-€40/m), whereas taller parapets are priced by area (€14-€19/m²). This suggests that contractors perceive higher parapets as closer to wall-style construction, requiring more complex bracing and vertical support, which significantly impacts the total "Formwork" budget. The synergy between Chapter 3 (Concrete) and Chapter 4 (Formwork) is evident; while Offer 4 had the cheapest concrete rates, its formwork rates were mid-range, illustrating the importance of analysing these two structural trades as a combined "skeletal" cost block.

Reinforcement Steel

Reinforcement steel is the single most expensive material cluster in the structural phase, representing 10% of the project total. The total estimated quantity of high-tensile steel is 25.200kg, which is mostly distributed across the raft foundation 8.200kg, slabs and beams 7.600kg, and boundary walls 4.600kg. Unit rates for the supply, bending, and installation of steel in Nicosia in 2025 are remarkably tight, ranging from €1,15 to €1,35 per kilogram. Offer 1 provided the lowest rate at €1,15/kg, while Offer 3 was the highest at €1,35/kg, leading to a total chapter variance of approximately €6.700. In addition to the bulk weight, contractors allocate a specific amount for consumables and "extras," ranging from €300 in Offer 2 to €1.750 in Offer 3.

This category is highly susceptible to global commodity market fluctuations; however, data from late 2025 shows a marginal cooling in metal product prices (-0,99% annually), which may explain why contractors were able to offer sub-€1,30 rates despite an overall rise in other construction indices. The structural integrity of the Lakatamia house is heavily reliant on this 25-ton steel skeleton, making this one of the least negotiable areas for budget trimming.

Masonry

The masonry chapter, accounts for 4% of the total construction cost and emphasizes the use of Class "A" clay bricks to meet Cyprus' thermal performance standards. The project utilizes three specific wall thicknesses: 100mm for internal partitions (138m²), 200mm for secondary external walls (27m²), and 250mm for primary high-thermal external walls (95m²). The 100mm walls are priced between €30 and €36 per square metre, while the 250mm thermal walls—integral to the building's Energy Class "A" certification—attract higher rates from €48 up to €58 per square metre. Lintels (anoflia) also show price differentiation based on wall thickness, with 250mm lintels priced at €35-€43 per linear metre compared to €25-€40 for the thinner internal equivalents.

The total cost for this chapter remains relatively stable across all five bidders, ranging from €10.682 to €12.332, suggesting a high level of market competition and standardized labour rates for bricklaying in the Nicosia district. Given that mineral products like cement and aggregates saw a 3-4% price increase in late 2025, the stability of masonry bids indicates that contractors are absorbing these small fluctuations in favour of higher work volumes.

Plastering

Plastering is a finishing trade that bridges the structural shell and the final aesthetic coatings, accounting for 4% of the project budget. The case study reveals a standard three-coat application process for both internal (260m²) and external (80m²) surfaces. Internal unit rates fluctuate significantly from €18 to €35 per square metre, reflecting different labour standards for the quality of the final "smooth" finish required for emulsion paint.

External plastering intended for painting is quoted at rates between €7 and €25 per square metre, where higher prices often account for the use of scaffolding and specialized waterproofing additives in the final coat. Plastering behind ceramics (60m²) and cabinets (90m²)—which requires only two coats—is consistently priced around €15 to €20 per m². Narrow surfaces and frames (plaisia) add a linear cost of €10 to €21 per metre, while an allowance for mesh and corner beads ranges from €250 to €900. The total budget for this chapter ranges from €10.930 to €15.760, demonstrating that the "hand-finish" quality of plastering remains a major variable in residential tendering.

Flooring and Cladding

The Flooring and Cladding chapter represents a 5% share of the budget, but its actual financial impact is much larger because the owner typically supplies the high-value materials (tiles and granite) separately. The contractor's bid covers the labour for installation and the supply of adhesives and grout. For the Lakatamia house, ceramic installation for the living area (63m²), bedrooms (44m²), and terraces (54m²) is priced at labour rates of €25 to €32 per square metre. Marble and granite work for thresholds (9m) and window sills (13m) is quoted at €10 to €26 per linear metre.

A major component is the "parapet tops" (patouda), requiring 86m of granite capping at labour rates between €10 and €28 per metre. Substrate preparation (skrit) is essential for the floor finish, with internal lightweight concrete (for pipe coverage) priced at €12-€15 per m² and standard concrete screeds for garages and terraces at €14-€22 per m². Total contractor labour and adhesive costs for this chapter range from €14.394 to €17.601, but when including owner-supplied materials—which can average €30 to €60 per m²—this category becomes one of the most luxury-sensitive parts of the home.

Insulation and Waterproofing

Insulation and waterproofing, which are critical for meeting the Class "A" energy rating and the watertightness of the house, represent 9% of the total budget. This chapter covers the entire thermal envelope, most significantly the "Thermal Facade" system, which involves 240m² of 80mm thick insulation with a final "graffiato" texture. Unit rates for this high-spec system are remarkably consistent at €52 to €54 per square metre, totalling over €12.000 for the external walls alone. Roof insulation is another major expense, requiring 130m² of 80mm extruded polystyrene at rates ranging from €15 to €35 per m². Waterproofing includes 182m² of asphalt membrane for exposed slabs at €17-€22 per m², and specialized SIKA-grade coatings for the foundation and wet areas.

Given that Cyprus is experiencing an average 5-8% increase in construction costs due to energy-standard demands, the €22.299 to €31.930 spent on this chapter is arguably a valuable long-term investment, significantly reducing the home's future utility bills and maintaining its resale value in a market increasingly focused on ESG (Environmental, Social, and Governance) trends.

External Works

External works account for 4% of the project and encompass the site's critical infrastructure and the boundary fencing that defines the suburban plot. This chapter includes the construction of the external sewerage system, where an absorbent pit (priced from €1.200 up to €5.000 depending on contractor equipment) and a septic tank (€700-€2.800) are required as provisional infrastructure. External plumbing features heavy-duty manhole covers (€150-€260 each) and 110mm drainage piping (€15-€65/M).

Beyond utilities, the chapter covers the landscaping of 240m² of green space with a 200mm layer of topsoil, priced at labour rates of €5 to €10 per m². The final finish of the boundary fence walls, involving 180m² of "superplast" or similar third-coat plastering, is quoted at €12 to €18 per m². Total costs for this section vary widely from €10.649 to €17.781, reflecting different interpretations of site-specific drainage challenges and the level of landscaping finish intended for the Lakatamia plot.

Sundry Works

The Sundry Works chapter, accounting for 1% of the budget, handles the remaining architectural details and mandatory connection fees for the capital's municipal services. A standout architectural feature is the construction of a masonry BBQ counter, 3,60m in length, which contractors have priced between €1.440 and €2.400. This chapter also facilitates the formal connection of the house to Nicosia's utility grid: electricity (AHK) connection fees are estimated at €300 to €1.500, telecommunications at €200 to €500, and water supply at €250 to €500. An essential but often overlooked item is the repair and restoration of the public sidewalk post-construction, for which bidders have allocated between €500 and €1.000.

While the total for this chapter is relatively low—ranging from €3.440 in Offer 2 to €6.950 in Offer 1—these items are non-negotiable for obtaining the final "Certificate of Approval" required to occupy the building legally in Cyprus.

Builders' Assistance

Builders' Assistance accounts for 2% of the project and represents the main contractor's fee for coordinating and supporting specialized sub-contractors on-site. This coordination includes providing vertical transport, site security, electricity for specialist tools, and the cleanup of subcontractor debris. The assistance package ranges from a competitive €3.000 in Offer 3 to €8.100 in Offer 4. This budget is typically shared across key packages: electrical assistance (€1.000-€2.500), plumbing and mechanical assistance (€500-€1.000), and coordination for the aluminium installers (€100-€1.000).

This allowance incentivizes the main contractor to maintain a clean and synchronized site, which is vital in 2025 as contractor availability is at a premium and technical coordination for modern homes requires more frequent on-site inspections and inter-trade collaboration.

Provisional Sums

The most expensive chapter in this Case Study is the Provisional Sums, which accounts for 34% of the total tender price across all bidders, totalling €110.000. These are predetermined budget allocations for specialized sub-contracts that are typically nominated or selected by the owner and architect at a later stage. The largest components within this €110.000 amount include carpentry and woodworking, which covers all internal doors, kitchen island units, and bedroom wardrobes. Aluminium systems follow closely, allocated for high-performance "Thermal" systems such as the MU3000 Thermal or MU2075 Thermal suites.

By using a unified €110.000 sum, the tendering process allows the owner to clearly compare the contractors' "core" structural and masonry rates without being distracted by the owner's later choices in luxury kitchen finishes or lighting fixtures.

Construction Prices per m²

Analysis of the total tender amounts against the 180m² building area of the Lakatamia house reveals the real-world construction costs currently dominating the Nicosia market. While the official Cyprus Statistical Service (Cystat) data suggests an average of €1.214 per m² for residential houses (based on 2023 completions), this project’s tenders show that prices in late 2025 are significantly higher.

The average tender price of €1.781 per m² is consistent with reports from construction professionals who state that for a modern, Energy Class "A" home, the real cost in 2025 typically ranges between €1.700 and €2.500 per m². This premium is driven by a 1,28% rise in the Construction Materials Price Index in the first half of 2025, particularly in minerals and mineral products (+3,65%) and insulation materials (+1,44%). This project demonstrates that the "minimum" viable build cost for a detached house in suburban Nicosia has now moved past the €1.700 mark, primarily due to the ever-stricter thermal insulation requirements and the higher seismic reinforcement required under updated Eurocodes.

Conclusions & Recommendations

The cost analysis of this project provides clear evidence of the stabilization of the Nicosia construction market at a higher price floor than previously estimated. The primary takeaway is the significant weight of Provisional Sums (34%) and Insulations (9%), which together account for nearly half of the total budget, reflecting the modern homeowner's focus on finishing quality and long-term energy efficiency. 

The tendering data reveals that while structural concrete and reinforcement prices are relatively uniform, the most aggressive competition occurs in the Preliminaries and Earthworks categories, where some contractors offer nearly half the price of others.

Key Recommendations:

+ Budgetary Contingency: Property owners should maintain a minimum 5-8% contingency fund specifically for mineral-based items (concrete/masonry), as these categories are currently showing the highest inflationary pressure in the 2025 market indices.

+ Analysis of Subtotals: Owners should scrutinize bids that show abnormally low Preliminaries or Builders' Assistance costs, as these may lead to poor site management or delayed subcontractor coordination, which can cause higher downstream costs.

+ Energy Investment: The case study confirms that spending approximately €30.000 on high-spec insulation is standard practice (Chapter 9) and necessary for Class "A" certification, which is now critical for maintaining the property's liquidity and "green" financing eligibility.

+ Early Contractor Selection: Given the big increase in new construction starts in 2025, contractor availability is limited; owners are advised to secure trusted professionals through platforms like Projects.cy to avoid the "boom-period" premium pricing.

+ Transparency in Provisional Sums: By keeping the provisional sums fixed at €110.000 across all bids, the owner effectively isolated the core building rates, a strategy that is highly recommended for identifying the most efficient general contractor for the structural shell.