A terrible decade for property values
House prices and rents in Greece fell the most among EU countries between 2010 and the end of 2020, according to Eurostat analysis.
More specifically, house prices fell by 28.1% and rents by 25.1%. However, the trend was not uniform during this period and house prices and rents have increased recently, according to the report released earlier this week.
In most EU countries, prices and rents have increased. Declines in housing values were recorded, in addition to Greece, in Italy (-15.2%), Spain (-5.2%) and Cyprus (-3.4%). The highest price increase was recorded in Estonia (112.8%). Regarding housing rents, only Cyprus (-4.1%) joined Greece in decline during the decade 2010-2020.
Rents in Greece fell by 40% in 2010-12, at the start of the financial crisis, and have gradually increased since, without compensating for this sharp loss. Data from the Bank of Greece on house prices show a steady decline until 2017, with a total decline of almost 42% and a recovery since: in 2019, prices increased by 7.2% and 4, 2% in 2020, despite the effect of the pandemic of the past year. The increase was still below the EU average (5.7%)
The fall in prices paralleled the sharp decline in household income: Greece’s GDP per capita, adjusted for purchasing power parity, was 67.4% of the EU average in 2018, compared to 93.3% a decade earlier. The average disposable income of households fell from € 24,224 in 2010 to € 14,932 in 2016, according to Eurostat.
Of those who rent, 83% in Greece spend more than 40% of their income on rent, compared to 25% in the EU.