Expensive real estate: Greeks spend more than half of their income on housing

The “champions” in spending money on living, whether in a rented apartment or in a private apartment, are undoubtedly the Greeks.

According to a survey by Pan-Hellenic Real Estate Network E-Real Estates, our country ranks first in Europe, where citizens spend more than 50% of their income on meeting their basic needs.

Asking rental prices have skyrocketed in recent years. In particular, in the center of Athens, which has seen the most growth, rental prices have increased by an average of 20-30% over the past three years, while in areas outside the center, the corresponding increase is estimated at about 10% -15%. “For 2021, rental growth is estimated at between 3% and 7%. Today, the percentage of income spent by a renter in our country reaches 60% -70% of the average salary, ”emphasizes Themistoklis Bakas, President of E-Real Estates.

Renters and homeowners spend over 50% of their income on housing costs
According to a Eurostat survey, our country ranks 1st in the ranking of European countries, where tenants spend more than 50% of their income on housing… In particular, 62.1% of tenants in 2019 spent more than 50% of their disposable income on housing costs, while Romania ranks second in the table with a corresponding percentage of 29.4% and Spain 26.2%, that is, spending almost half less from what the Greeks spend.

The corresponding percentages are recorded in Portugal, Germany and France and amount to 14.5%, 10% and 8.6%. “We understand that 62.1% recorded in our country can only be described as“ outrageous ”and unacceptable for any employee. It is worth noting that the above figures refer to 2019. If we include the increase in the asking rent that was recorded in 2020 and 2021, we understand that the problem is much more serious, ”says Mr. Bakas.

Astronomical rent for the average worker: how much has it grown in Athens and Thessaloniki

At the same time, Greece’s leading position in the cost of living, exceeding 50% of disposable income, does not apply only to tenants (62.1%), but also applies to property owners who pay mortgages.

According to Eurostat for 2019, 13.7% of homeowners in our country spend more than 50% of their disposable income to cover the cost of housing, while the corresponding percentage of homeowners without borrowed funds reaches only 15.6%.

The President of Real Estate Network comments: “We understand that the percentage in our country is extremely disappointing compared to the 30 European countries surveyed. The indicator of those with mortgages who spend more than 50% of their income on housing in Portugal is 1.4%, in Spain – 2.3%, in Germany – 6.4%, in France – 0.3%, in Cyprus – 0%, Switzerland 2.9% and Italy 2%. The percentage of citizens who spend more than 50% of their income on housing (owned and not burdened with payments to the bank) in Portugal is 1.1%, in Spain – 1.4%, in Germany – 7%, in France – 0 , 3%, in Cyprus – 0.1%, in Switzerland – 7.1% and in Italy – 2.6%. “

The report concludes that either the income of the Greeks has fallen sharply in recent years, or the cost of maintaining real estate (taxes, energy, etc.) in our country has now risen sharply compared to other European countries. After all, real estate is one of the important sources of income for the state budget.

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