BMI View: Following a slight growth of 0.5% y-o-y in 2016, Greece's construction industry is expected toexpand 1.3% y-o-y in 2017. The residential and non-residential building industry will shrink 2.6% y-o-y in2017, while the infrastructure sector will grow 4.9% y-o-y, both contributing a share of 46.2% and 53.8%respectively to the total construction value. The substantial growth in the infrastructure industry in 2017will be mainly caused by the under-construction TAP gas pipeline, while the projected real contraction inthe residential and non-residential building industry this year is due to the current removal of the EUR7bnAl Maabar-Elliniko mixed-use project from our forecasts, which we have factored from 2019 onwards asgovernment now looks set to block it.
Latest Updates And Structural Trends
In May 2016, the Greek government stated that a fund, known as 'Hellenic Company for Assets andParticipation (EDIS)', will claim ownership of all assets of the Greek state, including 70,000 real estateproperties, all major state-owned companies (such as utility companies), public transport, state shares inbanks as well as assets of Hellenic Republic Assets Development Fund (TAIPED), which will act as itssubsidiary. The new entity will be based in Athens, with a charter envisioning its existence for 99 yearsand with an initial share capital of EUR40mn (Naftemporiki).