Greece: Apartments have become investments, not housing

Housing crisis in Greece goes beyond statistics: it is already a social disease. Real estate turns from a vital necessity into an unattainable luxury. Main reasons – Airbnb“frozen” due to red loans apartments and low construction activity.

Artificial housing shortage

According to Bank of Greece Financial Stability Reportthousands of real estate properties remain in the portfolios of banks and servicers due to non-performing loans. These apartments are not returning to the market: some are waiting auctionsanother is stuck in judicial and technical procedures that are effectively blocking entire residential areas.

The second reason is investment exploitation housing. More and more apartments are being rented through short term rentals or are bought up by foreign funds that turn Greek houses into a tourist product. Accommodations that were once rented by families now provide income to travelers, leaving locals homeless.

Construction in a coma

Solution State Council By New building code froze the industry. In combination with rising prices for materials and energy this led to historic lows in construction. In the first six months of 2025, permits fell by 14%, area by 24%, and volume by 17%.

The result is a market where prices are not rising because of demandand because of artificial shortage. This is an economic absurdity, where empty apartments raise the cost of those that are still available.

Prices and rent

In the second quarter of 2025 apartment prices increased by 7.3% compared to last year, exceeding the peak of 2008. New apartments went up in price by 6.8%, old ones by 7.6%. IN Athens growth was 5.9%, in Thessaloniki and regions – 8.8%. The index reached 104.5 points.

Renting follows this trend: price index reached 114.7 points – 10 higher than a year earlier, approaching the levels of 2011. This makes rent in major cities almost unaffordable for the middle class.

European record for housing costs

According to data Bank of Greece And EurostatGreek families give 35.5% income for housing, and almost every third – more 40%. This is the highest figure in European Union7 points higher than second place Denmark.

Actually housing has become the main source of economic pressure in the country. With historically high prices and tight supplies, Greek families are trapped in paying more to live with less.

Source link