The housing crisis is worsening in Greece. Between 2022 and 2023, property prices have increased by almost 11%.
House prices in Greece have increased by almost 11% between 2022 and 2023, according to a recent study by real estate agency Global Property Guide. A rise that further aggravates the housing crisis that the country has been suffering for several years.
”There is a supply of real estate for sale, but people protest a lot because of the prices. And this is logical because unfortunately in Greece we do not have official data on transfers. And this creates a very particular problem because we all discuss prices based on the asking prices in the ads. But the asking prices in the ads come from the owners or the real estate agents and they are not the final prices of the transactions.” explains Antonis Markopoulos, co-founder of the real estate agency Prosperty.
This problem is compounded by Greece’s massive overburden rate. Here, the total cost of housing is almost 40% of the average wage, according to Eurostat.
”In terms of rental, there is indeed a very big supply problem, because the demand for rental is five times greater than the supply. Today, five people ask and one rents. And generally, what is rented is an old property. Because when an owner renovates his property or builds a property, he either puts it in short-term rental, or he promotes it to a very restricted circle of tenants,” adds Antonis Markopoulos.
Closing prices for mid-size urban properties are estimated to be 15 to 20 percent below asking prices. If interested owners, buyers or renters had a clearer idea of real prices, the market would regulate itself, experts say.
The Greek government has announced that it will unveil new measures by September aimed at improving the country’s real estate market.