Greek building sector heats up, June permits rise 23%
Greek construction activity recovered in June, with new permits advancing 23 percent, in the strongest growth the sector has seen in 8 months.
The data reflects increasing confidence in the sector as property developers rush to meet strong demand for residential housing and cover supply shortfalls.
Helping support growth in building activity are investments from non-residents seeking Greece’s Golden Visa via real estate investment with a growing preference for properties that involve a change of use.
Greek law specifies that non-EU residents can benefit from the country’s residency for investment program from as low as 250,000 euros. This applies if the asset being invested in is an industrial building being switched to residential use.
Private sector permits rise 23%
The latest data from the Hellenic Statistical Authority, Greece’s statistical service, shows that private sector building activity in June (based on volume) jumped 23 percent year-on-year to 2.54 million cubic meters versus an increase of 14.4 percent in May. The June figure is the biggest increase seen since October last year.
The rebound also reflects a receding wave of uncertainty that hit the building sector early this year due to grey areas arising from the implementation of the country’s New Building Code (NOK). Since then the Environment and Energy Ministry has provided clarifications on the law while a presidential decree providing further clarity on the issue is also expected soon.
Change of use – Unlocking value
Changes to Greece’s Golden Visa provide an interesting mix of options.
Those opting for real estate in high-demand areas, such as the regions of Attica and Thessaloniki, as well as Greek islands with a population of over 3,100 inhabitants are required to make a minimum investment of 800,000 euros to qualify for the program. Outside of these districts the minimum investment amount has been set at 400,000 euros.
As a result of these changes, a growing number of non-residents are turning to the third option. This choice specifies that investors who convert a commercial property (such as an industrial building) into a property of residential use can benefit from the lower 250,000 euro threshold (as opposed to the 800,000 and 400,000 euro investment minimums).
This applies regardless of the property’s location and there is no restriction on the surface area either.
Shift to eastern Attica
In the broader Athens region (Attica), the eastern areas drew most building activity. In districts such as Lavrio and Rafina, permits relating to 80,889 m3 were recorded followed by 76,840 m3 in southern suburbs and 72,009 m3 in the northern suburbs.
Out of the larger urban areas, 187 permits (65,600 m3) were issued in the Ionian islands (Corfu 15,580 m3, Lefkada 26,444 m3). Another 241 (61,593 m3) were issued for the southern Aegean with most permits relating to Paros and Rhodes.
Please contact our team for any inquiries about the Greek Golden Visa and how you can start your process.
