The prospects for these are particularly positive, according to the study of the Foundation for Economic and Industrial Research ( ) on the ” Trends, challenges and prospects of Construction”. According to IOBE’s study, the Recovery and Durability Fund (TAA) along with the other European Funds and National Funds will finance infrastructure projects that will fuel the strong development of Construction over the coming years. Based on the analysis of the actions of the National Recovery and Durability Plan, it is estimated that grants of EUR 9.9 billion will be directed towards projects directly related to Construction, mobilising total resources of EUR 12.8 billion. Construction projects supported by grants from the TAA mainly concern the pillars of Green Transition (EUR 6.3 billion) and Private Investment (EUR 2.7 billion). Therefore investments in Construction – mainly infrastructure – are estimated to significantly strengthen their share of GDP in the period 2024-2026. In the medium term additional investment in infrastructure and housing is estimated annually up to 3.0% of GDP on average (compared to 2022) – with the share of investment in construction projects reaching 8.6% of GDP in 2025 from 4.8% in 2022. It is also estimated that the production value of construction infrastructure and housing projects will follow a strong upward trend in the period 2024-2026, surpassing EUR 18 billion in 2025 (from EUR 10.3 billion in 2022). Due to the strong impact of ESAA’s investments, the overall thrust will be given to a greater extent than investments in infrastructure and construction projects other than housing, but private building activity has been considered to be reinforced by 56% compared to the level recorded in 2022. Construction bank financing balances decreased after 2016 with most of this reduction due to the write-offs (non-performing) of loans from credit institutions’ balance sheets. In the period after 2021 the remaining loans to the Constructions were stabilised and slightly increased, while research shows the existence of a financial gap for small and medium-sized enterprises in Greece, which was expanded after the energy crisis and the consequent increase in lending costs. The development of public and private construction projects, participation in public projects and modernisation of the industry’s productive potential will require significantly increased funding resources from the financial system, both in working capital and in medium and long-term loan funds. At the same time, the size of enterprises in the sector will also be considerably increased in the coming years. It was estimated that total turnover of the sector would be significantly increased in the period 2024–2026, reaching EUR 21.4 billion in 2026, once all the resources of the Recovery Fund (subsidies and loans) considered to be directed towards construction projects have been absorbed. The expected increase in the turnover of technical and scholarly enterprises will also fuel the need to increase their bank lending. In particular, the total net bank lending of enterprises in the sector is estimated over the period 2023-2026 could be increased by EUR 972 million to EUR 1.77 billion. For micro-enterprises, the increase in total net bank lending ranges from 174 to 317m euros, accounting for 18% of the total increase. Small businesses raise 22%, medium-sized enterprises 24% and large 36% of the total increase in net bank lending. However, there are still significant challenges for the industry. These include, inter alia, labour-related issues and the financing of industry enterprises, the institutional framework of the public works production system and national infrastructure planning, the integration of technology and the digitisation of construction in order to enhance the productivity of the industry and, finally, the adoption of ESG standards by construction firms. Labour shortages highlight as the main growth obstacle in 2023, and funding difficulties are also assessed negatively as to their impact on construction activity. The lack of labour means delays that may lead to an increase in the budget and failure to comply with project timetables. The strong development of domestic construction activity over the coming years will create additional needs on the workforce of various specialties. According to the study estimates, all construction workers should be increased over the period 2024-2026 to some 250 thousand workers, a level that is 51 to 55 thousand workers higher than the total employment in Construction in 2022 (197 thousand workers). The prospect of further increase in construction projects in the coming years creates additional funding needs, including guarantees for participation and good implementation of projects. The need for additional funding and liquidity is reinforced by delays in payment of construction firms, particularly in the field of public works. The difficulties in financing and the financial gap can be alleviated by the use of various financial instruments (e.g. guarantee funds, interest rate subsidies, etc.), so that public and private investment in construction projects can be implemented seamlessly in the coming years. In relation to the institutional framework, and given the large increases in construction costs, the need for a systematic operation of the mechanism for setting the price revision factors covering the whole range of individual costs to limit uncertainty for participants in public works competitions and the related problems that may arise during the implementation of the projects was highlighted. This will contribute to the development, operation and management of the Single System of Technical Specifications and Pricing Technical Works and Studies and the Electronic System for the Identification of Technical Works Production Factors, which has not yet been implemented. Low digitisation rates, but also the lack of investment by construction companies, are two major challenges for the sector’s resilience and competitiveness. As the sector consists mainly of small and medium-sized enterprises, the margins for investment in innovative technologies are generally low and the need for financial support and other financial incentives is high. The recent announcement of the National Strategy and road map for the implementation of Building Information Modelling (BIM) in Greece is a positive development. The implementation of BIM is estimated to contribute decisively to the production of sustainable and durable projects, improving the process of awarding studies, construction and maintenance of public works. To integrate the changes required by the BIM National Strategy takes time for the broad development of the necessary skills, so that industry companies meet the new requirements and procure the necessary equipment. The management of environmental, social and corporate governance (ESG) issues is particularly important to facilitate the access of construction companies to investment and financial funds. The potential benefits of adopting sustainable practices with ESG criteria also include improving their environmental performance and avoiding any adverse economic impact, enhancing their reputation, easier adaptation to the legislative framework, integrating the principles of the circular economy and strengthening cooperation with all stakeholders (local societies, customers, investors, staff, etc.). Finally, the need to draw up a National Strategic Infrastructure and Construction Planning Plan, in which priorities will be set, the planned and planned investments in large economic and social infrastructure, the funding resources for critical infrastructure projects will be specified, including their maintenance, and the labour force and skills needs for their implementation will be identified. The national infrastructure plan will provide significant support to the construction sector, helping to provide documented operational planning and the implementation of the necessary investments in skills and productivity improvement.
IOBE: 21.4 billion euros will reach construction turnover by 2026
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