Building in Crete, possibly, with German capital (8)
I believe the answer is:
erecting
'building' is the definition.
(I know that erecting is a type of building)
'in crete possibly with german capital' is the wordplay.
'possibly with' indicates anagramming the letters.
'capital' says to take the initial letters.
The first letter of 'german' is 'g'.
'in'+'crete'='increte'
'increte' anagrammed with 'g' can make 'ERECTING'.
(Other definitions for erecting that I've seen before include "Building something" , "Constructing" , "Building, putting up" .)