Housing prices will continue to rise: Bank of Greece predicts price increases in 2026

The measures taken by the Greek government to combat the housing crisis remain insufficient – I came to this conclusion TτΕ (Bank of Greece) in a report released on December 22.

The Central Bank directly indicates the need additional and deeper interventionsgiven the serious social consequences of the shortage of affordable housing.

According to TτΕ, the key to solving the problem lies on the supply side. At the same time, the bank warns that in the context of the continuing rise in prices in the real estate market a new wave of price increases is expected in 2026albeit at a more moderate pace.

What measures does the Bank of Greece consider necessary?

The report emphasizes that already implemented government initiatives, such as the “Σπίτι μου ΙΙ”rental subsidies, as well as measures announced at the end of the year that will be fleshed out in 2026 (tax incentives for long-term rentals, new regulation for changing the use of unused properties) – moving in the right directionbut remain insufficient.

The central bank insists that without a massive expansion of housing supply, the crisis will only deepen. In particular, it is required:

• simplification of licensing procedures and urban planning approvals;
• reduction of bureaucratic barriers when changing the purpose of objects;
• activation of “dormant” real estate objects;
• stimulating private and public investment in housing construction.

Such a strategy, according to TτΕ, will ease price pressure, increase geographic mobility of labor and support demographic goals in the face of rising living costs.

Social consequences of the housing crisis

The Bank of Greece emphasizes that the problem of affordable housing has already become central socio-economic challenge. The growth of domestic and external demand against the backdrop of limited supply led to a sharp increase in real estate prices and rental rates, aggravated by inflation.

Government support programs, tax incentives and social development projects, although important, mainly affect demand. In the short term, housing supply remains constrained, hitting young people and families particularly hard, affecting demographic behavior and employment mobility.

Investments and price forecast

According to TτΕ’s assessment, investment interest and price growth in the real estate market will continue in the coming period, although the growth rate will be more restrained, provided there are no serious external macroeconomic or geopolitical shocks.

The real estate segment remains particularly stable high classdemand for which is supported by foreign buyers, tourism, improving macroeconomic indicators and infrastructure modernization.

Bureaucracy as a system brake

Despite positive trends, the real estate market in Greece is still constrained bureaucratic and administrative delays. Without simplification of procedures at all stages of property management, a significant part of objects and investments will remain blocked.

The Bank of Greece recommends paying special attention :contentReference[oaicite:1]{index=1} and agglomerations, where the bulk of the population and investment activity are concentrated. The development of the city’s northern business corridor and the large-scale Elliniko project in the south of Athens are already changing the structure of demand and will have a long-term impact on the housing market.

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