Greece: 25% rise in house prices

In aggregate, for three years 2018-2021 there was a dynamic growth in property prices.

According to experts, the positive dynamics remains in relation to the recovery rate in the real estate market against the background of favorable prospects for the Greek economy. After a long period of decline, when construction activity was frozen, interest in real estate is returning to the fore.

According to NEA, Themistoklis Bakas, President of the All-Greek Electronic Real Estate Network (Πανελλαδικού Δικτύου E-Real Estates), the data on the Greek real estate market today is completely different compared to 2017-2018, indicating that “the industry during the memorandum years and especially during 2009-2014 in many cases it has even lost 40% of its value, while the demand for real estate and housing in particular has fallen. “

The course has changed completely over the past three years. In particular, 2018 was the first year when the requested sales prices increased by 1.5%, the growth continued in 2019 by 7.2%, and in 2020 by 4.3%, while until the first quarter of 2021 prices housing costs increased annually.

In general, for the period 2018-2020. home sales prices in Athens have increased by a total of 20%, while based on current market dynamics, it is estimated that they will exceed 25% by the end of 2021.

Mr. Bakas, referring to the dynamics of price increases, is in a hurry to clarify that there were no new buildings in 2017, because construction activity was almost zero, as a result of which most of the available properties for sale were those that were built in 2012. Today, the highest and lowest price applies to the majority of new buildings, which are less than 5 years old. At the same time, in many areas, there is a large discrepancy between the maximum and minimum bid prices.

This happens mainly in the southern suburbs of Attica, such as Glyfada, Elliniko, Voula, because over the past 2 years, many new elite-level buildings have been erected on plots near the golf course, the capital’s park and the sea.

It is assumed that the opening of a “crane” by banking institutions to provide citizens with new mortgage loans (in 2020, their total amount reached 687 million euros, and in 2021, according to information, will reach 900 million euros) will spur price increases, as the demand for real estate in connection with newly discovered financial opportunities.

“The age-old dilemma of the real estate market: getting a mortgage or paying rent, is currently changing course. Citizens choose the option of purchasing their own home, ”said the President of the E-Real Estates Network. Roughly in Attica, renting an apartment suitable for a family in the eastern, northern and southern suburbs costs from 650 € to 850 €, that is, almost the same as the average monthly salary. And the payment of the mortgage payment may be less, and as a result, you get your own home.

Buyer Profile
Currently, a significant part of the population buying housing are borrowers under the age of 44, who have the opportunity to contribute 20-30% of the value of a particular property from their own savings, and to cover the missing amount – take a bank loan

Basically, home buyers choose objects up to 160,000 euros with 2-3 bedrooms, that is, from 75 sq.m. up to 95 sqm, while the average size of a mortgage loan is estimated at 90,000-100,000 €, and in many cases, own participation exceeds the required 20% -30% and reaches 40% -50%, in order to obtain a minimum loan and the minimum monthly loan payment.

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