Greece

Overall construction activity

In 2025, the construction sector continued its strong expansion within a favourable macroeconomic environment. Construction investment reached EUR 18.07 billion, accounting for approximately 7.3% of GDP, (which reached EUR 248.35 billion at current prices), while gross value added increased to EUR 5.27 billion from EUR 4.57 billion in 2024 (+15.3%). Gross fixed capital formation rose to EUR 15.12 billion in constant prices (+16.6%), confirming sustained growth in real construction activity.

Labour market conditions remained supportive, with construction employment increasing to 707,628 persons (out of a total national employment of 4.34 million). At the same time, labour shortages became increasingly evident, particularly in skilled occupations, creating capacity constraints for the sector. Despite strong market conditions, geopolitical uncertainty, particularly related to developments in the Middle East, may affect construction costs, investment sentiment and overall market activity. The impact on the Greek construction sector will depend on the duration and intensity of these developments.

Business activity remained positive, with 9,568 new company registrations reflecting continued confidence in market prospects. However, bankruptcies increased to 43 firms, highlighting the challenges posed by labour shortages, elevated costs and increasing competition. These developments indicate a more selective market environment, favouring financially stronger and more efficient companies.

Construction material prices continued to rise, although at a slower pace than during the inflationary period of 2021–2023. While inflationary pressures have eased, material costs remain structurally elevated, continuing to affect contractors' margins and project costs.

For 2026, construction activity is expected to remain positive, although growth is likely to moderate as investment dynamics mature and supply-side constraints become more pronounced. Market consolidation is expected to continue, while elevated construction costs and geopolitical uncertainty may continue to affect project affordability and investment decisions.

Housebuilding

In 2025, residential construction recorded strong growth, with investment increasing to EUR 7.61 billion from EUR 6.07 billion in 2024 (+25.4%). In real terms, residential investment reached EUR 6.36 billion, confirming continued expansion in construction activity. At the same time, residential building permits declined to 9,790 units from 11,599 units in 2024 (-15.6%). Single dwellings fell to 4,091 units, while collective dwellings declined to 5,699 units, suggesting that current activity is largely supported by projects already in the pipeline. Collective dwellings remained the dominant housing type, reflecting continued demand for higher-density urban developments.

The residential property market continued to attract domestic and foreign investors, although at a more moderate pace than in previous years. Demand remained stronger than the supply of modern and affordable housing, supporting further increases in house prices. The subsidised housing programme “Spiti mou II” also continued to support market activity. Construction costs continued to rise, although at a slower pace. According to ELSTAT, the Material Price Index for new residential buildings increased by 2.5% in February 2026, compared with 4.0% a year earlier, indicating a gradual easing of cost inflation.

For 2026, residential investment is expected to remain positive, although the weakening permit pipeline may gradually constrain new supply. Housing market pressures are therefore expected to persist, supporting house prices and investment in high-quality, energy-efficient residential properties.

Non-residential construction

In 2025, non-residential construction continued to benefit from strong investment activity, with gross fixed capital formation reaching EUR 15.12 billion in constant prices (+13.8%). Price increases and investment demand remained concentrated in premium office space, tourism/hospitality assets, and logistics/warehousing, though growth moderated compared with previous years. This sustained activity was heavily anchored by EU funding, particularly through the Recovery and Resilience Facility (RRF).

For 2026, non-residential construction is expected to maintain positive growth, supported by continued EU fund absorption and resilient investment demand, although activity is likely to moderate as private investment conditions become more challenging.