The Bank of Greece has released its latest report on property prices in Greece, revealing a strong upward trend in both nominal and real terms. The report provides detailed insights into the annual and quarterly price growth across different regions of the country.
Key Findings:
- Overall growth: Property prices in Greece saw a significant increase in 2023 compared to 2022, with a rise of 13.4% compared to 11.9%.
- Q4 2023: The fourth quarter of 2023 showed a continued upward trend, with apartment prices increasing by 11.8% year-on-year.
- New vs. old properties: Prices for existing apartments are rising faster than those for new ones, with annual growth rates of 14.2% and 12.4%, respectively.
Reasons for the difference:
- New properties: Higher initial prices due to superior quality and features, such as energy efficiency (classes A and A+).
- Existing properties: Lower energy efficiency, leading to higher utility bills.
- High demand: Limited supply of high-quality new housing in certain locations with high demand.
Regional variations:
- Highest growth: Thessaloniki (+16.2% in 2023).
- Athens: Average increase of 13.7% over the year, the highest among European cities.
- Specific areas in Athens: High growth due to developed infrastructure and low investment threshold for the “golden visa” program. For example, Piraeus saw a 23% increase in price per square meter from 2022 to 2023.
Market outlook:
The report indicates that the Greek property market is experiencing continuous growth. The main factors driving this growth include:
- Economic recovery: The Greek economy is showing signs of recovery, leading to increased confidence in the real estate market.
- Mortgage lending: Rising levels of mortgage lending are making it easier for people to purchase property.
- Foreign investment: Greece is attracting significant foreign investment in real estate, particularly from investors seeking to obtain the “golden visa.”
Overall, the Bank of Greece report provides a positive outlook for the Greek property market in the short to medium term. The strong growth in prices, combined with the favorable economic conditions and rising foreign investment, suggest that the market is likely to continue to perform well in the coming years.
This is good news for investors who are looking to purchase property in Greece. However, it is important to note that the market is not without its risks. Investors should carefully research the market and choose the right location and property type before making an investment.
For more information on the Greek property market, please contact us. Our team of experts can help you find the perfect property for your needs and investment goals.
