Greece: rising property prices

“The real estate market has responded dynamically,” says a finance officer, analyzing the latest data from real estate agencies, notaries and banks, which show that after the “slowdown” in previous months due to the pandemic, prices have started to rise again.

After an impressive jump in 2019, when prices rose by an average of 7.2%, mainly due to the strong interest of foreign investors in the Golden Visa, buying and renting real estate objects, the trend suddenly “slowed down” and even rolled back …

The Greek TV program Good Morning Hellas noted that prices “rose” by 3.2%, up from 2.5% in the fourth quarter of 2020. The prospects are now improving, especially in Athens. Stable demand for housing has raised prices by 7.6%, and this is the year of the pandemic!

However, rising prices are also driving up rents, creating an imbalance given that citizens’ incomes are not following a similar course. “The market will gradually come to equilibrium,” says the expert.

Data from the European Statistical Office show that the percentage of homeowners in Greece remains very high despite the decade-long economic crisis, at over 74%. In practice, however, this means that 25% live in rented housing and are directly influenced by growing trends.

It is significant that, according to the Cerved survey, 41% of households in our country are burdened with monthly expenses related to either rent, mortgage payments, or home management costs, which in total exceed 40% of total income. citizens. Bulgaria with 29.3% of households and Cyprus with 17.6% follow these indicators with a significant lag.

Financiers estimate that the trend of new construction, which will increase the supply of new housing and balance rents, is clearly moving more slowly than the trend of renovation.

In addition, the expansion or improvement of infrastructure, such as a metro line, creates new added value and helps to keep rents at a high level. This is reflected in the data.

Even where corrections have been made, such as in the center of Athens, the price per square meter is still high. According to the latest analysis of income and living conditions of citizens, 30.4% of households said that it is very difficult for them to pay the monthly mortgage payment or rent.

These trends are reflected in new zonal prices that will be announced shortly, but will not take effect until the new year (2022) to give stakeholders time to navigate.

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