Property & construction industry
Real estate & construction sector is one of the most important economic sectors in Greece, but it is also the sector that has sometimes been hardest hit by the economic crisis. Between 2000 and 2004, the Greek construction sector contributed on average 7% of GDP. In the first quarter of 2012, this contribution was only 3.75%. Between 2003 and 2007, the construction sector provided over 8% of all jobs in the country. In the second quarter of 2012, the contribution was only 5.6%. In absolute terms, the construction sector provided 402,000 jobs in 2007 and only 213,500 jobs in the second quarter of 2012.
In the first half of 2010, 269 construction projects (with a value of more than €2 million) were awarded in the public construction sector, in the first half of 2011 only 144. In the first half of 2012, 204 public construction projects were awarded again. (Source: European Commission Half Year Report A 2012, Association of Greek Construction Companies).
A more marked decline in orders is recorded in the private construction sector. While in 2003 building permits for 102.2 million m³ were applied for, in the first half of 2012 the figure was only 8.5 million m³. This drastic decline is due to the extremely hesitant lending policies of Greek banks on the one hand and the extremely high taxation of real estate on the other.
This situation has in turn led to a fall in property prices. As a result, opportunities for participation in projects with very attractive returns are often arising, particularly in the commercial property sector.
Further interesting investment opportunities arise from the privatisation of stately real estate, airports and marinas in touristically attractive locations.
Together with our network, our team accompanies numerous Greek and foreign companies in the construction and real estate sector in their projects in Greece and, together with our EUCONNEX partners, in 10 other EU countries, especially in the following areas:
- Real estate investments
- Project Development
- Building projects