Building and construction to Greece

(Last updated: 26 Jul 2007)

Trends and opportunities

The market

The Greek economy has significantly improved in the last 10 years spurring economic growth and business opportunities across industry sectors, with the Greek Government currently working on improving the road, rail and telecommunications network.

The growth in infrastructure projects has turned the sector into the engine of Greek economic growth. Today the annual turnover of the construction industry in Greece is almost five billion euros, equal to about 16 per cent of the country's GDP. This figure is projected to rise significantly over the coming years.

The market for building materials is around $7 billion, 75 per cent is local production. Around 1400 organisations deal with the supply, importation and distribution of materials. Materials most used are reinforced concrete for the structural framework and bricks and mortar for internal and external walls. There are 46,000 registered architects and civil, mechanical and electrical engineers.

Challenges include:

• Need for land use regulation with respect to green and open space
• Planning for the renovations of existing buildings
• Improved building standards dealing with longevity and multiple use
• Better quality management and systems for buildings
• Greater use of environmentally friendly materials

Opportunities

Australian providers of specialised materials, technology or services can find opportunities in the market, especially if they are offering something unique and price competitive. Although there is a significant amount of local production of building materials in Greece, the country is still import dependent in many areas.

Competitive environment

The construction industry is made up of a large number of small companies - around 12,000 companies participate in public projects and 30,000 in private projects. There are six major construction companies in Greece that undertake large scale projects from civil to commercial and industrial works.

The largest construction group is Elliniki Technodomiki-Aktor-TEB that has a total turnover of about $75 billion. In the 90s, Greek companies began to team up with foreign partners for build-operate-transfer construction projects. This model has proved successful for a number of major infrastructure projects. Where expertise in large-scale projects has been lacking, Greek firms have entered into joint venture arrangements with European Union (EU) contractors to deliver specialised works.

Greek construction companies have benefited substantially from these alliances with foreign companies. Not only have the Greek companies gained experience and technical expertise but they have also improved in terms of size and structure.

There are limited opportunities for Australian contractors to bid for work in Greece as it will be difficult to break into a market that is dominated by Greek and EU firms.

Tariffs, regulations and customs

As a guide, the importation of building products into Greece attracts 20 per cent in tariffs and duties but this varies depending on the specific product.

Industry standards

As a member of the European Union, Greece follows European standards and in some areas has its own building code requirements. Austrade can provide advice about potential opportunities for specific goods and services and their application in the Greek market.

Marketing your products and services

Market entry

It is highly recommended that Australian firms do business in Greece through a local partner. The market can be quite complex and requires an understanding of local business practices and language.

Take the time to consider your choice of partner. It is necessary to ensure they have the right local connections and experience in bidding for relevant projects.

Marketing building products requires direct approaches to architects, engineers and contractors ideally through a local partner. It is therefore recommended that a partnership arrangement is in place prior to marketing your products in Greece.

There are a number of trade publications and trade exhibitions that can be used to promote building products but direct approaches to end users and decision-makers will offer the best initial outcome.

Service providers can offer their expertise directly to contractors, architects, engineers and other customers, but keep in mind that a 20 per cent of the service fee will be withheld by the Greek partner or end-user as there is no double taxation treaty between Greece and Australia. Unless the Australian firm has an European Union operation from which the services can be provided, this witholding tax will need to be built into the final price being offered for services.