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Strong pressures on the Greek real estate market and from the more expensive constructions
Construction inflation is still running at a multiple rate compared to the change in the consumer price index (1.6%). At +6.4% for September the change in the price index of materials for the construction of new buildings.
HOWEVER, the conditions for the Greek real estate market are becoming more and more difficult. The negative growth rate of housing loans on the one hand and the continued rise in the prices of building materials on the other limit the possibilities for both the renovation of existing properties and the construction of new ones. new ones. The increase in the cost of building materials forces builders to raise the selling price of the property in order to maintain a profit margin. But the more the price goes up, the less the demand for buying new construction properties. Combined, in fact, with the continued compression of housing credit – and yesterday’s data from the Bank of Greece showed a further reduction in the balance of housing loans – the conditions in the real estate market are becoming even more pressing.
Compared to September 2022, the price index for new building construction materials showed an increase of 6.4%. The rate is skewed from the +12.4% recorded in September 2022 compared to September 2021. However, the increase works additively. It is indicative that the general price index for construction materials for new residential buildings has risen by 19.6% in the last two years (or from 104 to 124 units) when from 2015 to 2021 it had increased by only 4%. The upward trend continued in September and on a monthly basis. The general index in relation to August showed an increase of 0.4% against an increase of 0.9% that had been noted when comparing the corresponding months of the year 2022.
Monthly changes
The General Price Index of New Residential Construction Project Categories for the 3rd quarter of 2023, compared to the corresponding index for the 3rd quarter of 2022, showed an increase of 3.2%, compared to an increase of 7.6% recorded when comparing the corresponding indices of year 2022 with 2021. The General Index during the 3rd quarter of 2023, compared to the index of the 2nd quarter of 2023, showed an increase of 0.7%, against a 1.9% increase noted during the corresponding comparison of the indicators of the year 2022. The average index for the twelve months October 2022 – September 2023, compared to the corresponding index for the twelve months October 2021 – September 2022, showed an increase of 5.1%, against an increase of 5.9% recorded during the corresponding previous twelve months. The General Price Index of Construction Costs of New Residential Buildings for the 3rd quarter of 2023, compared to the corresponding index for the 3rd quarter of 2022, showed an increase of 5.6%, against a 9.6% increase noted during the corresponding comparison of the indices of the year 2022 with 2021. In particular, the annual increase of 5.6% is due to the increase of the Material Price Index by 6.8% and the increase of the Labor Remuneration Price Index by 3.5%. The third quarter The General Index during the 3rd quarter of 2023, compared to the 2nd quarter of 2023, showed an increase of 1.1%, compared to an increase of 2.0% recorded during the corresponding comparison of the indicators of the year 2022. In particular , the quarterly increase of 1.1%, is due to the increase of the Material Price Index by 1.2% and the increase of the Labor Remuneration Price Index by 0.9%.
The individual changes
FROM THE MONTHLY CHANGES, +4% in diesel, +0.9% in cement, +0.8% in bricks and +0.5% in aluminum frames stand out. The average index for the twelve months October 2022 – September 2023, compared to the corresponding index for the twelve months October 2021 – September 2022, showed an increase of 9.1%, compared to an increase of 9.8% recorded when comparing the corresponding previous twelve months.
The 6.4% increase in the index during the month of September was the result of the following individual changes:
• Bricks: +1 3.8% • Safety glass panels: + 12.6% • Plastic, synthetic, fiber cement pipes: +1 2.3% • Heaters: + 11.3% • Copper conductors: +7.3% • Ready concrete: +7.0% • Tiles in general (floor, wall): +7.0% • Parquet: +7.0% • Wooden wardrobes: +6.8% • Marble tiles: +6.7% • Cement : +6.5% • Built-in cabinets: +6.3% • Aluminum frames: +6.2% • Plastic, acrylic, water: +5.7% • Wooden windows: +5.5% • Copper pipes: + 4.9% • Internal doors: +4.6% • Rebar: +4.3% • Electricity: -1.2% • Diesel: -2.2%