Is it time to buy real estate in Greece?
The real estate market in Greece in 2021 has shown a rapid recovery, according to an interim report by the Bank of Greece. The last months of the year were characterized by the dynamics of investment residential real estate, affecting both sales and leasing, in the short and long term. After a long period of sluggish construction activity, analysts report significant growth rates, and the demand for new mortgages shows some initial incentives.
Price levels in the real estate market
The trend of de-escalation in the growth rate of housing prices in Greece has reversed over the past year. In particular, for the first nine months of 2021, the values of apartments (in nominal terms) increased by 6.1% on an annual basis, up 4.9% over the corresponding period of 2020. Smooth growth was reported for the country as a whole - 4.3% in the first quarter, 6.2% in the second and 7.9% in the third quarter. There was significant investment interest in some areas: Athens (8.3%) and Thessaloniki (6.3%). They were the main reasons for the overall positive results in the country. The prices of the old apartments have increased on average by 6.2%, and those of the new ones by 6.1%.Apartment in Athens - 124 sq.m / 270 000 euro |
Apartment in Athens - 75 sq.m / 130 000 euro |
The property can be viewed in ISQM Real Estate Agency Profile |
The property can be viewed in Grecia Home Agency Profile |
Construction boom in Attica and Thessaloniki
Housing activity in 2021 marked a significantly high annual growth rate in the number and volume of new building permits at the national level - 48.9% and 57.7% respectively, and even higher in Attica (66, 1% and 71.0% respectively). Foreign investment in real estate in Greece for the reporting period exceeded 800 million euros, the analysis also shows. Increased foreign interest, which fueled the recovery of the market especially in 2018-2019, recovered in 2021, growing by 34.7%, compared with a decline by 42.5% in 2020, despite the limited number residence permits for property owners under the Golden Visa program.Business expectations for housing construction, as reflected in the corresponding index of Economic & Industrial Research (IOBE), have increased significantly (47.1%) in 2021 compared to 2020. The number of real estate transactions has also increased, especially given the implementation of the new revised targets from 2022 and the suspension of the obligation to present the Electronic Building Identity by the end of 2021. According to the data of the Greek Statistical Authority (ELSTAT) from the study of the of notaries public activity on the concluded purchase deeds, transactions decreased by 22.6% in 2020 (74,769 sales and sales compared to 96,662 in 2019).
Apartment in Thessaloniki - 55 sq.m / 65,000 euros |
Apartment in Thessaloniki - 42 sq.m / 96,000 euros |
The property can be viewed in the profile of the agency "Seven Real Estate" |
The property can be viewed in the profile of the agency "Seven Real Estate" |