Greek cement giant Titan Group has warned that the prospects for the construction market are poor. It writes that “The small signs of recovery that were visible in the market by the end of 2014 completely vanished in the second half of 2016, mainly due to the enforcement of capital controls and their resulting effect on private consumption and demand for private constructions.” While the group’s sales in Greece represent just 6 percent of its total sales, Titan Group continues to look for further markets to export cement to from its domestic plants.
Still, there continue to be some indicators pointing to grounds for optimism in 2016. According to data published by the Greek National Statistics Services (ELSTAT), new building permits for private constructions reached 271,000 sqm last year, an increase by 21.3 percent, while the total volume of in cubic meters rose 67 percent compared to the end of 2014.
Private construction activity declined 3.3 percent on an annual basis. However, 26.2 percent of the total building volume in Greece came from state-sponsored investment. This illustrates the dependence of the sector on public funding.
