Filenews 18 July 2022 - by Theano Thiopoulou
In 2020, the average cost of building a house was reached levels above €1,000 per sqm and prices are much steeper than at the time of the real estate bubble and without taking into account the inflation of building costs of the last year that has reached the heights.
The data announced last week by the Statistical Service, show that the increase is noticeable in several sectors of construction activity and is not taken into account in 2021 and 2022, years when construction costs increased significantly and translated into an additional burden on the square metre.
In the five months of the year, the increase in costs stands at 19.91%. The rising cost of construction comes amid the ongoing Russian-Ukrainian conflict and soaring prices of energy products, as the energy sector remains one of the biggest problems. More specifically, the average cost for a house in 2020 was €1,059 per sqm, while in 2010, when there was overheating in real estate, the average construction price was €946. The construction of an apartment is slightly lower and the price per sqm is estimated at €992, while in 2010 it was €807 per sqm. In this day and age these prices do not apply and it must be calculated that they are increased by about 20%.
Where there is a big difference downwards in 2020 is in the cost of construction of tourist infrastructure and especially hotel units. Specifically, the average construction cost in 2020 was €1,179, while a year ago it was at €1,746. In 2010, the average cost of building a hotel unit was €1,113 while in 2000 it was €1,060, highlighting the large increases that have occurred in recent years in the hotel construction activity.
If someone wanted to build tourist apartments, the Statistical Service has calculated that the average construction cost was €1,427 per sqm in 2020, while a year ago 1,211 and in 2018 at €977. In 2020, the cost of building restaurants was €1,264 from €1,081 per sqm in 2019. And compared to €1,501 in 2018. For clinics and laboratories the average cost was €1,195 in 2020, for educational institutions €813 and for churches €1,576 per square meter.
EYEWITNESS WITNESS
Strict planning is now required
Land developers, but also citizens who try to get housing for themselves or their children are in despair, as since November 2020, when the increase in the cost of construction materials began, there has been no break in price containment. In many cases it turns out that the money secured through loans for the construction of buildings is not enough, in relation to the initial calculations of households and land development entrepreneurs, resulting in borrowers being forced to knock on the door of banks again to request an increase in the initial amount of borrowing. The construction of a house requires strict planning for each cent that is spent, because in the end you start and you do not even know where you will end up financially.
