Rising costs of construction materials threaten Greek real estate sector

The all-important, and previously recovering, real estate sector in Greece has also come under serious pressure over the recent period due to rising costs for construction materials.

The development threatens to dampen or even freeze the construction of all types of new buildings, from much-needed apartment buildings in urban areas, holiday homes and even commercial real estate.

In statements to ot.gr, the president of an association of builders, Dimitris Kapsimalis, the average cost of a building hovered at 1,100 euros per meter before the pandemic.

However, over the last few months, the cost of new construction has exceeded 1,800 euros per square meter, without calculating the value of the land.

The higher cost of construction has reached a maximum of 50 percent, before and after the pandemic and Russia’s invasion of Ukraine.

Specifically for December 2022, the Greek statistics authority said construction materials posted increases of 11.7 percent, yoy.