The Greek real estate market is evolving into a two-tier market, with the inflow of foreign capital remaining robust and fuelling the upward trajectory of property values.
According to the provisional report on the Monetary Policy by the Bank of Greece (BoG), expectations for the near future remain cautiously positive, influenced by key factors such as international developments, high inflation, increased interest rates, and uncertainty affecting Europe and the global economy as a whole. Meanwhile, shifts in demand, initiated during the pandemic, persist, creating a market with varying speeds.
As the data shows, the Greek real estate market is appealing to investors despite negative international developments and uncertainties arising from geopolitical instability in the last two years. Property prices have continued their upward trajectory due to increased demand both domestically and internationally for high-quality properties, maintaining high growth rates, albeit milder compared to previous quarters.
However, leading indicators related to the domestic market, as well as the evolution of prices at the European and international levels, suggest a potential upcoming correction in prices, especially for properties with lower demand.
In the housing market, the report notes, strong growth rates in apartment prices remained steady until the third quarter of 2023, despite a slowdown in some price indices in the last two quarters.
According to data collected by the Bank of Greece, during the first nine months of 2023, apartment prices (in nominal terms) increased by 13.9% on an annual basis, compared to an 11.2% increase during the same period in 2022.
As long as demand from abroad persists, and the supply of quality properties remains limited, prices are expected to continue their upward trend, particularly in the high-end segment of the market, pulling secondary markets along. However, the rate of price increase is anticipated to fall off due to the current circumstances, which prevent investors from being complacent about the medium-term market conditions.