Boston, MA -- (SBWIRE) -- 11/12/2012 -- BMI View: Our outlook for the Greek construction industry has turned more bearish, and we forecast a 10.6% year-on-year (y-o-y) contraction in real terms in 2012, marking a third consecutive year of decline for the industry. Most infrastructure projects have EU funding and the government is looking to speed up infrastructure growth; however, as a way to buoy the recession-hit economy, we see little prospects for recovery in the sector anytime during our 10-year forecast period to 2021.

Faced with weak economic growth prospects, reduced spending on planned projects and diminished demand from the private sector, there is little reason for investors to return to the market. Growing at a lacklustre 0.9% annual average between 2012 and 2016, we expect the infrastructure industry value to reach only EUR3bn by 2016, compared with the EUR5.2bn seen in 2007. In the residential and nonresidential segment, higher property taxes, tight credit and rising unemployment have resulted in 200,000- 270,000 unsold properties, forcing a significant proportion of contractors to offer discounts of 30-50% as a way to avoid looming bankruptcies.

View Full Report Details and Table of Contents

However, areas with growth potential include:

- Transport Infrastructure: In August 2012, Greek development minister Costis Hatzidakis announced that the government will increase its focus on new transport infrastructure projects to boost development in the recession-plagued economy. Key transport projects include an extension of the Athens metro network, completion of a metro network in the northern city of Thessaloniki, expansion of the suburban rail network and the regional ports of Patras, Igoumenitsa and Lavrion.

- Renewable Energy: Greece's government is keen on making the country Europe's solar energy powerhouse, with up to EUR20bn being invested over our 10-year forecast period to 2021. The incentive, broadly named Project Helios, sees Greek solar power production multiplying by about 50 times, from 206 megawatts (MW) in 2010 to 2.2 gigawatts (GW) by 2020 and up to 10 GW by 2050. Industry participants are already positioning themselves to tap growth the segment, with US photovoltaic solar developer SPI Solar being the most recent player to announce the successful completion of two large-scale power projects in Greece in August 2012.

- Privatisation Drive: Privatisation of Greek energy and infrastructure assets is proceeding at full speed, with the government planning to relaunch the entire process over H212. We believe there will be significant efficiency gains for the Greek energy and transport networks, following the liberalisation of the sectors that will pay dividends for wider economic activity in the coming years.

About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

Browse all Construction research reports at Fast Market Research

You may also be interested in these related reports:

- China Infrastructure Report Q4 2012
- Indonesia Infrastructure Report Q4 2012
- Singapore Infrastructure Report Q4 2012
- South Korea Infrastructure Report Q4 2012
- Vietnam Infrastructure Report Q4 2012
- Saudi Arabia Infrastructure Report Q4 2012
- Kuwait Infrastructure Report Q4 2012
- Turkey Infrastructure Report Q4 2012
- Brazil Infrastructure Report Q4 2012
- Cote d'Ivoire Infrastructure Report Q4 2012