Significant increase in Greek construction activity.
The recovery of Greek construction activity after the pandemic crisis is a fact and is certified by the official data of Hellenic Statistical Authority (ELSTAT). At the same time, the increase in construction activity is accompanied by increase in the prices of building materials for new buildings, leading, according to market sources, to an increase in construction costs by 20% to 30%.
More specifically, the size of the construction activity in May, showed an increase of 62.9% in the number of building permits, by 111.8% in surface area and by 97% in volume compared to last year.
The main reason for the increase is the private construction activity which showed an increase of 63% in the number of building permits, 113.7% in the surface area and 98.2% in the volume compared to last year.
Over a 12-month horizon (June 2020 – May 2021) the size of the construction activity increased by 18.9% in the number of building permits, 23.1% in the surface area and 18.2% in the volume.
At the same time, however, the general index of prices of building materials for new residential buildings increased by 4.1% in July compared to the same month in 2020. Representatives of the market estimate that the situation will worsen from September when construction activity will start from new, since the construction cost has already increased by 20% to 30%. Significant is the increase recorded since the beginning of the year in basic building materials related to the implementation of public works as in some categories they reach up to 75%.