Buying a home tends to become a kind of luxury – Makeleio.gr

Analysts see further increases in housing prices in Greece, evaluating the latest data from the Bank of Greece. If the forecasts are confirmed, it will exacerbate the housing problem faced by young people and not only them. In the rental sector, short-term tourist rentals have absorbed all the available housing supply.

In particular, the Greek housing price index has, over the past six years, shown a cumulative recovery of 66% compared to the lowest price recorded in Q3 2017. The scope for improvement could not be greater, if housing prices were compared to those of other European countries. It is remarkable, according to an analysis by Alpha Bank, that housing prices remain 4% below their highest point in Q3 2008, sixteen years ago. If you also evaluate the strong capital inflows into the Greek real estate market from abroad, stimulated by the rapid recovery of Greek tourism to make the country the top destination for a holiday home, it becomes clear that house prices will rise. Boost further.

Real estate-related FDI in Greece amounted to €2 billion in the 2022-2023 biennium, compared to an average of €0.4 billion in the previous decade. The implementation of the Golden Visa programme, which provides incentives for third-country nationals to purchase real estate in the EU, has given a significant boost to FDI in real estate in our country. However, the high interest of foreign investors may be tempered by the increase in the limits of the said programme, which came into effect from August 2023 onwards, at least for homes valued at €250,000 or less. The new €500,000 limit is expected to shift interest to more expensive properties, even if the number of potential buyers is limited. However, as in many other markets, rising prices at the top end of the market, the most expensive part of the market, tend to drag the cheaper categories upwards.