Building slows in October due to confusion over VAT

Construction activity growth slowed considerably in October, Hellenic Statistical Authority data showed on Friday, with market sources attributing the phenomenon to uncertainty at the time regarding the government’s intentions over the application of the value-added tax suspension on new buildings.

Therefore building permits increased by 13.6 percent year-on-year, but dropped by 3.6 percent in terms of total area and 9.9 percent in terms of volume compared to a year earlier.

November is expected to show a rebound in the growth rate, after it became clear the VAT exemption concerned all buildings with permits from 2006 to 2022.