Greece construction industry set for growth amid increased investments

On May 23, 2025, a report highlighted the anticipated expansion of the construction industry in Greece, predicting a real-term growth of 2.3% for the year 2025. This forecast is supported by significant investments in transport and electricity infrastructure projects, as well as an increase in building permits issued. In 2024, the Hellenic Statistical Authority reported a notable 14.8% year-on-year growth in building permits, with the total surface area approved rising by 17.2%. The momentum continued as the construction production index grew by 20.1% in 2024, indicating a strong recovery following an annual growth of 9.4% in 2023. Looking ahead, the sector is expected to achieve an average annual growth rate of 3.4% from 2026 to 2029. This growth is driven by both public and private sector investments, particularly in residential and tourism sectors. The Interministerial Strategic Investments Committee approved several significant tourism projects worth approximately EUR1.2 billion in March 2025. Notable investments include EUR224 million by Indian firm GH Hotel and Tourism for luxury villas in Evia, EUR474 million by US real estate company Hydra Rock for a resort in Ermioni, and EUR524 million by Serbian Astakos Terminal International Commerce and Services for development of a port in Astakos. These projects reflect the increasing interest and commitment of foreign investors in the Greek construction market, further fostering optimism about the industry’s future. The report provides an overview of the construction market, including historical analyses and forecasts across various sectors such as commercial, industrial, and residential, while discussing the implications of these investments on Greece's economic landscape.