Residential property prices in Greece continue their upward trajectory

Greek housing prices have soared throughout the country amid strong demand which cannot be met by the current supply.

According to the Bank of Greece provisional data, apartment prices (in nominal terms) are estimated to have increased on average by 10.4% year-on-year in the first quarter of 2024. In 2023, apartment prices grew by an average annual rate of 13.8% (revised data), compared with an average increase of 11.9% in 2022.

More specifically, in the first quarter of 2024 the year-on-year rate of increase in prices was 10.8% for new apartments (up to 5 years old) and 10.1% for old apartments (over 5 years old). According to revised data, in 2023 prices of new apartments were up on average 12.7%, against an increase of 12.5% in 2022, whereas prices of old apartments grew by 14.5% in 2023, against an increase of 11.6% in 2022.

Broken down by region, in the first quarter of 2024 apartment prices increased year-on-year by 9.4% in Athens, 12.2% in Thessaloniki in northern Greece, 10.3% in other cities and 12.1% in other areas of the country. For 2023 as a whole, prices increased on average by 13.8%, 16.5%, 15.0% and 11.4% respectively in the above-mentioned areas (revised data).

Finally, as regards all urban areas, in the first quarter of 2024 apartment prices are estimated to have increased on average by 10.8% year-on-year, while for 2023 they increased at an average annual rate of 14.1%. (revised data).

Notably, in the first quarter of 2024, average selling prices across the country increased by 66.4%, just 4.1% below the peak recorded in the third quarter of 2008.

It is worth noting that in the first quarter of 2024, the change in the residential property price index compared to the peak, recorded in the third quarter of 2008, is -4.1%, while, compared to the lowest level recorded in the third quarter of 2017, it is 66.4%.

For most aspiring Greek homeowners the sharp spike in sales prices combined with deteriorating household purchasing power and limited bank lending, makes it difficult for them to find a property they can afford.