Greece: a sharp increase in apartment prices in the fourth quarter

According to the Bank of Greece, in the fourth quarter of 2022, the annual rate of change in apartment prices for the entire country was 12.2%. Depending on the age of the property, the annual rate of change in prices for new apartments was 12.1%, and for old apartments – 12.2%.

Depending on the geographical location, the annual rate of change in apartment prices was 15.2% in Athens, 14.5% in Thessaloniki, 10.3% in other major cities and 6.3% in the rest of the country.

Statistical data

Based on data collected by credit institutions, it is assumed that in the fourth quarter of 2022, apartment prices (in nominal terms) increased by an average of 12.2% compared to the corresponding quarter of 2021, and in 2022, apartment prices increased by an average annual 11.1% compared to 7.6% growth in 2021.

In more detail, the price increase in the fourth quarter of 2022, compared to the corresponding quarter of 2021, amounted to 12.1% for new apartments, i.e. up to 5 years, and 12.2% for old ones, i.e. over 5 years old. For 2022, the CAGR of prices for new apartments was 11.8%, compared to an increase of 8.2% in 2021, and the CAGR for old apartments was 10.5%, compared to an increase of 7.2% in 2021.

From the analysis of data by geographic regions, it can be seen that the increase in apartment prices in the fourth quarter of 2022, compared to the corresponding quarter of 2021, amounted to 15.2% in Athens, 14.5% in Thessaloniki, 10.3% in other large cities and 6.3% in other regions of the country. For all of 2022, price increases in the same regions compared to 2021 amounted to 13.0%, 11.8%, 10.0% and 7.4%, respectively. Finally, across all urban areas in the country, in the fourth quarter of 2022, apartment prices increased by 13.0% compared to the fourth quarter of 2021, and for 2022 the average annual increase was 11.5%.

Notice to property owners

It should be noted that a sharp rise in real estate prices and, accordingly, an increase in rental prices for real estate, in the face of falling living standards, has already led to dissatisfaction among low-income categories of the country’s population, which in the medium term may lead to legislative decisions that will limit rent.

For example: for the second year in the Greek Parliament, the issue of restrictive measures against short-term rentals has been considered. As long as the conservative “New Democracy” is in power, which is supported by medium and large capital, there is a sluggish struggle between supporters and opponents of restrictive measures. But after the elections, with an increase in the number of left-wing parties in parliament (and this is inevitable, judging by the mood in society), the situation may change dramatically. And then, with a high degree of probability, restrictions will be introduced (following the example of other countries of the world), which will seriously hit the short-term rental industry, especially in cities and islands.

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