Real estate market executives unveiled at ered.gr that "as soon as Greek banks started providing the necessary liquidity and propsective property buyers started to transact in the housing market, increases in raw material prices -due to the energy crisis- made it difficult to have newbuilt apartments sold" . According to market information, the construction cost has recently increased by 20% to about 25%, which translates to an additional € 150 to € 200 / sqm.
According to the same sources, the increases in building materials prices, which many developers in Greece and abroad "pre-order" in order to secure material adequacy and a better price, are rather inflated since some are speculating in order to "repay" part of the losses caused by the Covid-19 pandemic for about 18 months.
The official data published by the Hellenic Statistical Authority confirm that building material rices have jumped 4.6%, diesel increased by 20.6%, copper pipes 16.4%, reinforcing iron 16.3% , copper pipes 12.1% and radiators 7.5%.
Construction firms that have committed to deliver properties sold during the last couple of years - with other prices and data - are facing particularly difficulties. Nowadays, construction costs are high and the new harsh reality that is already forming drastically reduces the interest in acquiring a home despite the "mitigating" promoted by the government such as the drastic reduction of the ENFIA tax, subsidies, etc.
