The real estate market seems to be living its own life despite the pandemic and lockdowns, at least in terms of prices, which not only did not decline in 2020, but instead continued the upward trend, albeit showing some signs of slowing down.
Growth for 12 consecutive quarters
According to data released yesterday by the Bank of Greece, throughout 2020, the average increase in house prices was 4.2%, compared with a 7.2% increase in 2019. In the fourth quarter of this year, growth was 2.6% year-on-year, while in the third quarter of 2020, annual growth reached 3.2%.
It is worth noting that house prices have been rising for three years (or 12 consecutive quarters), which is a sign of the diversification that has taken place in the real estate market.
During the fourth quarter of 2020, the annual growth in the secondary residential real estate market was 3%, and for new properties – 2%. Overall, over the year, the number of new apartments increased by 4.7% compared to 7.7% in 2019, and the average annual growth rate for the secondary housing was 3.9% in 2020 compared to 6.9% growth in 2019. …
In Athens, the price increase in the last three months of 2020 was 5.2% compared to the corresponding period in 2019, while in Thessaloniki, in the same period, the price increase was 4.1%. On the other hand, prices in other large cities (-0.5%) and in other parts of the country (-0.3%) declined slightly.
Overall, in 2020, the average selling price of homes in Athens increased by 7.4% and in Thessaloniki by 4.6%.
Therefore, at least so far, there does not seem to be any sign of strong pressure on home prices, although there is usually a delay of several months, according to the Bank of Greece, before prices reflect reality in the housing market.
The recently released annual report of the Bank of Greece notes that the housing market in the country is relatively robust, as evidenced by both the annual rate of growth in prices and the progress of construction, as well as other factors. Such as housing investment, which increased by 15.6% compared with a slight increase of 0.4. % in 2019, even if they still do not exceed 1% of GDP.
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