Sharp rise in house prices
Residential property prices have risen significantly over the past three years in Greece despite the onset of the pandemic, as average rates in Athens are now 30-32% higher than in 2018, while in Thessaloniki they are climbed from 21 to 25%, in the other large cities they increased from 9 to 14% and in the rest of the country from 10 to 16%.
Yet despite this remarkable rebound, homes remain between 22% and 37% cheaper (depending on the area) than the peak they reached in 2007, as Kathimerini Babis Charalambopoulos, scientific consultant for Solum Property Solutions, told us.
Although there is a clear upward trend in the country, especially in the two main cities, the new normal in the market shows forces pushing rates up and others working in the opposite direction, Charalambopoulos points out. .
For example, there is on the one hand an increased demand and therefore an increase in the prices of the few new buildings, which are generally located in prime locations; on the other hand, the pandemic has had severe effects on the economy, preventing much of the average income from considering buying a house, turning instead to renting. Additionally, while banks provide mortgages, many consumers seem reluctant to borrow due to their negative bad debt experiences from previous years; they must now have their own capital amounting to at least 25% of the property to be acquired.
“We are therefore in a phase of transition with two main trends, which pull prices up or push them down; this trend will generate a new price base which will vary according to the city, the location, the size of each property, the quality and its condition, its age and other characteristics ”, explains the advisor. by Solum Property Solutions.
He adds that demand is also observed for older constructions if their location and size are correct and the prices are within reach, as the buyer will have to spend money on improving the property as well.
There is increased demand in provincial towns with student communities and rising rates for vacation homes, especially in more popular tourist destinations.