Greek construction starts recovery in May

The Greek construction sector saw building permits rise by 7.4 per cent in May, according to the statistics agency ELSTAT. There were 1453 building permits issued in the month covering an area of 268,900m². May's figures are still 5.7 per cent down on May 2018 and are down 13.3 per cent lower than in the first five months of 2018.

However, 2018 was a rebound year from very low levels and the current statistics prove that the recovery in 2018 was not a one-off, say experts.

Moreover, the expected suspension of the 24 per cent value-added tax on new construction (except for owners of main residences) will help to reduce the backlog of unsold properties and act as an incentive for the construction of new buildings.

A further boost to construction is the 40 per cent tax discount on expenses for energy, funcational and aesthetic upgrades to buildings.