Decrease seen in construction
High plot rates, combined with the realization by some house builders that the prices of newly built properties are unlikely to keep rising at the same pace, seem to have put a brake on new housing construction.
Based on the seasonally adjusted data of the Hellenic Statistical Authority (ELSTAT), in this year’s first quarter investments in housing decreased by 14% on an annual basis.
At the same time, in January-May the index of business expectations for the construction of houses, processed by the Foundation for Economic and Industrial Research (IOBE), saw a marginal decline of 0.2% compared to the same period of 2023.
Meanwhile, the total cost of new constructions in the first quarter of 2024 continued to grow at an annual rate of 4%. On the plus side, however, the rate of increase has almost halved compared to the same period in 2023, when construction cost growth was 8.1%. Also positive for the future supply of real estate is the fact that residential construction activity continued to increase significantly, as during the first quarter of this year there was a yearly 42% increase in permits, a 38.3% growth in floor space and a 25% rise in volume.
