According to ELSTAT, the construction cost index for new residential buildings rose 4.8% in the third quarter of 2026 compared with the same quarter of 2025. The rise reflects a 5.1% increase in material costs and a 4.3% increase in labour costs. Compared with the second quarter, the index was up 1.4%, with the same rise for materials and labour. The work categories price index, which tracks the prices builders charge for each type of work, rose 3.5% year on year and 1.1% quarter on quarter.

What it means: The data show that building homes in Greece keeps getting more expensive at a pace above average inflation, with pressure coming from both materials and wages. The 4.3% rise in labour costs is linked to the shortage of skilled workers in the sector, a problem construction firms and engineers mention often. The gap between construction cost, up 4.8%, and the work categories index, up 3.5%, means that part of the cost increase is for now being absorbed by builders rather than passed on in full. For construction and technical firms, these figures matter for price adjustment clauses in contracts, especially on long projects or public works where revisions rely on official indices. Businesses planning to expand premises or renovate offices should build realistic margins into their budgets. The figures concern construction costs, not home sale prices, which also depend on other factors such as demand, location and financing. For banks and valuers, the index is also a reference point for rebuilding costs in property insurance.

Notice: For information only. Not investment advice or a recommendation to buy or sell.

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