It is expected that in In 2025, rental prices will reach new record levels.. Market analysts attribute this primarily to high demand and limited supply, since a significant number of property owners have switched to short term rental.
Realtors and property owners, although noticing a slowdown in price growth, believe that this is only a temporary phenomenon and prices will continue to rise at the same pace next year.
According to the Central Bank of Greece, the aggravation of the problem of housing costs is a consequence of its large-scale investment exploitation, the withdrawal of properties from the market that provide non-performing loans and intended for auction, as well as low activity in the construction sector for a long time, which did not allow for the normal renewal of inventories real estate.
Rental prices
According to data from the Greek rental market, declining supply, especially in major cities such as Athens and Thessaloniki, is driving up prices, forcing tenants to participate in “treasure hunt” to find housing.
They are often forced to compromise on their requirements, for example on the age of the property, the type of heating or the availability of parking. On the other hand, those who are already renters often accept price increases requested by owners at the end of their contracts, knowing that they will have difficulty finding another rental property.
President of the Panhellenic Federation of Real Estate Owners (TOMATO) Stratos Paradias claims that rent will only decrease if if closed properties enter the market, and to do this, the government must provide incentives to owners to renovate them or convert them from short-term to long-term rentals. As long as supply does not increase, the imbalance between supply and demand will keep prices high.
New digital tool
Ministries of Finance, Digital Governance and the Independent Public Revenue Authority (AADE) are developing a new digital tool that will allow citizens see real property prices in every region of the country.
The digital app, which will display the real price of a property, will be launched in 2025 and is expected to promote transparency and reliability in the property market, as well as lower prices. Today, the real estate market is dominated by artificial prices, since in most cases the prices indicated in purchase and sale or rental agreements are lower than the prices in advertisements and from realtors.
The new system will use artificial intelligence to collect and analyze data from a variety of sources, such as transfer agreements, sales notices, data from tax authorities and cadastre. This way, citizens will have access to accurate and up-to-date information on real property prices.
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