3 are the main economic conditions that maintain an environment of high real estate prices:

 1. Low unemployment.

 2. High gross domestic product.

 3. High inflation.

Greece is currently showing the lowest levels of unemployment in 15 years. Our GDP is at 2011 levels, at the start of the financial crisis. Our inflation is at 3% compared to 1.8% in the Eurozone. Therefore there is an environment around us maintaining high prices.

In the capital, prices have been steadily rising since 2016. The main reasons are foreign buyers, the Golden Visa investment program and the high demand for entire buildings and small apartments in the center of Athens.

At the moment, most properties over 200,000 euros are seeing a slight decrease in demand. Most foreigners have frozen the purchase of an apartment after the announcement of the increase of the limit to 800,000 euros for Golden Visa.

Greek buyers are very careful about what they buy and how much they buy. The purchasing power of most is limited. And the banks are conservative and very careful when issuing loans.

Signs of a market shift are beginning to be felt. Declining demand for real estate is tipping the scales in favor of buyers and their choices.

Of course this in some areas will translate into an upcoming reduction in prices, especially for larger properties.

An exception is the MY HOME 2 program which temporarily for as long as it lasts in 2025, will raise the prices in some cases for the specific properties that meet the criteria.

Thanasis Stamou

Director of INVESTA Real Estate

Vice President of the Association of Realtors of Larisa