piraeus bank group

Non-residential real estate and economic activity: The case of Greece

Our aim is to discuss developments in non-residential real estate in Greece.

Given the lack of existing literature, we start by discussing at length the data sources available, and analyzing the stylized facts of non-residential real estate activity in Greece. Finally, we examine the degree of covariation (using the Index of Concordance methodology) between non-residential real estate and the business cycle.

Our results indicate that :

i) the structure of non-residential sector is highly fragmented into various sub-categories and

ii) at the initial stages of its developments it was strongly affected by the preparations for the 2004 Athens Olympic Games.

iii) Finally, despite its small share of total GDP, non-residential real estate shows a significant degree of covariation with the business cycle.

Ilias Lekkos

Chief Economist