forumland Blog

Big jump in construction costs!

21 November, 2022

Top managers of the real estate market are talking about an increase in the total cost of buildings, which reaches up to 30%, which leads to the rise in real estate prices.

The course of the prices of construction materials strongly worries the sector, without, at least so far, presenting a significant inhibition of construction activity, although some executives speak of delays, in order to make the necessary adjustments to budgets and to inform interested buyers - lessees.

The explosive rise in the cost of building materials is also confirmed by the recent data of the Hellenic Statistical Authority (ELSTAT).

The estimate is that a large part of the increases (among others, based on ELSTAT data, on an annual basis in August 2021 in copper pipes 16.4%, in rebar 16.3% and 20.6% in diesel) will passed on to the selling prices of real estate and rents - significant increases in real estate are expected - and at the same time the profit of the builders is limited.

The above is happening at a time when there is an increase in construction activity in Greece, a consequence of the increased demand and expectations for economic recovery, both for new apartments and for modern office spaces, after the multi-year economic crisis.