The strong growth in construction in Greece and the promising opportunities of the sector in the coming years is highlighted in a research report by the Foundation for Economic and Industrial Research (IOBE) presented at an event jointly held with the Engineers and Public Contractors Fund (TMEDE) on Wednesday.
The “Trends, Challenges, and Prospects of Construction in Greece” study focuses on analyzing the most recent data and developments in the construction sector in Greece, as well as assessing the sector’s prospects and the challenges it faces. It investigates the financing needs that may arise for the construction sector in the coming years, considering the prospect of significant increases in investments in infrastructure projects and other construction projects in Greece.
Additionally, it highlights some significant challenges for the sector, which are related to shortages in the workforce, weaknesses in the public works production system, national strategic infrastructure planning, as well as financing needs and rapid adaptation to the new environment of digitization and sustainable business development through the integration of environmental, social, and governance (ESG) principles.
Specifically, the study notes an 84% growth in the construction sector since 2017 and the impetus for further growth provided by high national and EU funding. According to IOBE, the projects in the framework of the Recovery and Resilience Fund and the NSRF 2021-2027 funding, combined with private investments including investments in homes, will activate total funds of more than 52 billion euros, including banking funds, for the period 2024-2026. This, IOBE said, is expected to significantly boost their share in GDP in 2024-2026.
The value of production in the sector, according to IOBE’s study, reached 12.8 billion euros in 2023 (84% over 2017), with 197,000 workers active in the sector in 2022, a relatively stable number with a slight tendency to rise. Architects and engineers totaled 74,000 in 2022, without significant change since 2017.
In 2022, investments in construction accounted for 4.8% of GDP (against 14.7% in 2007), while the deviation in 2022 compared to the EU (27) average exceeds 6 percentage points.
SOURCE; ANA-MPA
