Housing problem: property prices in Greece are “jumping”

The market is taking a wait-and-see approach ahead of the government's final announcements scheduled for September.

Property prices have risen 70% from their 2018 lows, at a rate many times faster than incomes. The housing problem is becoming increasingly serious, which requires action.

In the new cycle of the “My Home” (Σπίτι μου) program, the interest rate on housing loans will be subsidized by up to 90%, and the age criterion will be increased to 50 years.

Themistocles Bakas, President of the Panhellenic Electronic Real Estate Network, said: “This the program will create demand for home purchases in areas where real estate will be affordablewhich will result in prices rising again.”

The market is taking a wait-and-see approach ahead of the final announcements scheduled for September. “We have already seen from the end of April to the beginning of May, when it was actually announced that the My Home program would logically start, that is, in September 2024, we saw a large number of young people, as well as heads of families aged 40-45, stopped any process of buying houses to see if they could really join the program and become its beneficiaries“, – notes Mr. Bakas.

The proposal comes to the fore again reduce income tax for the purpose of providing (previously long-term) closed real estate for long-term lease. As stated by Stratos Paradias, president of the Panhellenic Federation of Property Owners (TOMATO): «The decision to open tens of thousands of homes is one and does not require any costs for the state. Give three years of income tax relief for any home that was closed during the last year, and we get the resultThe owners will be motivated, and new families will find a home and have children.”

Decisions on ban on short-term rentals expected in autumnwith the scenario of introducing a limit on the number of rental days being the dominant scenario, at least for tourist areas.

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