By Vasilis Kaltsas

The building in Greece is traditionally a cornerstone for the country’s GDP, while at the same time employing tens of thousands of workers.

As recent data from ELSTAT show, building activity in Greece scored a sharp fall In March, recording a 41.3% reduction in the number of building permits, 53.7% in the surface and 43.35 in the volume, compared to the same month of the previous year.

In addition, new legislation has recently been passed on the adaptation of urban planning incentives of the new building regulation.

What do market people say about the knockout

The big players

“The big players (and the minority working with very rich foreigners) are worried, but at the moment they seem to have no particular problems, as they still implement projects that have already been licensed in December 2024. They fear what will happen if this situation is expanded to 2026”; Elias Papageorgiadis, CEO of More Group of Companies reports on skai.grabout the new building regulation.

The professionals in the industry

“Professionals in the industry (as it appeared in the 4th barometer of the real estate market) are worried and see reversals and surprises that do not do good”, Mr. Papageorgiadis continues. “They find that real transactions are reduced to most parts of Greece and are afraid that the cloudy landscape will halt the dynamics of the industry.”he points out.

The smaller contractors

According to Mr. Papageorgiadis, there are also the smallest contractors, who are divided into 2 categories: the serious and experienced, who, taking into account the new data, often postpone new projects. On the other hand, there are those with less experience, who feel “uncomfortable” by the combination of uncertainty with the building regulation and the change of attitude of the majority of buyers.

“Most feel like we are moving in uncharted waters, and almost all business plans were overthrown and rewritten.”he stresses.

Expressing his personal view, Elias Papageorgiadis mentions “What is the Constitution and the laws in general for the operation of a country is the building regulation for the real estate market. In recent years there has been one … ‘rush’ to annul the in force of the building regulation before local urban planning plans appear in 2027 (as announced).

Thus, with repeated judicial decisions and appeals of municipalities and citizens essentially today in Greece no one can say with confidence:

  • On which plot of land can we build and on which not
  • How many squares and with what conditions can we build
  • What will happen if a “benevolent neighbor” drags us to the courts, blocking us despite the legal licenses we may have received

The result of this ‘rush’ is to rapidly reduce the number of new building permits in 2025, to have the ‘freeze’ of the local market in various parts of Greece and to discourage many serious companies, for the benefit of those who have no problem risking, leading to yet another distortion “.

Meter to stimulate building activity

Mr. Papageorgiadis also stresses that the building is needed:

“A simple and clear new building regulation, with bonuses to those who build smaller houses, for the needs of the average Greek, to clarify the landscape with off -plan real estate and those in small settlements (which today their owners are at risk of total disaster).”

“We also want clear rules,” he concludes.

IOBE’s survey

At the same time, a recent study by the Foundation for Economic and Industrial Research (IOBE) was published, according to which the tendency to issue building permits was upward, but was reversed in the first months of 2025 due to the uncertainty caused by the new building regulations ( incentives.

CoE decisions and arrangements that adjust national legislation will have an impact on building activity (eg cost of changing financial terms of contracts and potential damage to the counterparties, possible postponement of construction, cost revision costs, environmental equivalent costs).

In the less optimistic scenario of IOBE, High uncertainty in the impact of private building arrangements (NOK, and urban planning changes related to off -plan construction), and assumes a greater reduction in building permits for houses by 40% in 2025 (in surface terms), will affect the construction activity accordingly in 2026.