Greek construction market at a steady growing pace

Greek construction market is showing the first signs of improvement since the debt crisis which initiated in 2008.

According to Knight Frank's Global House Price Index, Greece holds the 48th out of 57 positions in global markets concerning commercial and residential buildings. In general, global market experiences an annual 17% increase in property prices with only 7 countries showing a decline of buildings value. The report states that after 10 years of Lehman Brothers collapse, house properties in 12 out of the 57 countries (including Greece, Italy, Spain, Ireland and Russia) still worth less than in 2008.

However, Greek's construction market seems to slowly but steadily improve. According to data from the summer of 2018, prices in Greece have increased by 0.8% compared to 2017 values. At the same time, a 0.7% rise is recorded between 4 and 6 month periods in 2018. Data derives from the Greece’s Association of Certified Real Estate Experts and was presented at the 83^rd Thessaloniki International Fair (TIF) held on 8-16 of September 2018.

During TIF, Greek experts in property market stated that real estate in currently being sold faster than in previous years. In particular, about 70% of the properties that were sold in the 2018 had been on the market for a long period before. In addition, about 1/3 of the new houses are bought in less than 6 months.

Greek's construction industry recovery is highly motivated by tourism. New hotel units are constantly developing in the country, Hellenic Statistical Authority data shows. Moreover, house owners invest in renovating old buildings and apartments in order to use them as Airbnb rentals. 

Other large-scale infrastructure projects have also been approved across Greece, boosting construction industry in the country, a sector that took a devastating blow during the past years of the economic crisis.

Source: Gtp.gr