Greece Real Estate: Sellers Outnumber Buyers

Explore the Greece real estate market’s supply-demand imbalance, driving prices high despite weakening demand from foreign buyers.

The persistent dissonance between supply and demand continues to exert upward pressure on property prices, even as the appetite for purchasing diminishes. Recent findings from the 3rd Real Estate Market Barometer, executed by the Public Opinion and Market Research Unit of the University of Macedonia under the esteemed Professor George Siakas, reveal a striking disparity: the pool of prospective buyers remains at least double that of sellers. This study, which surveyed 1,500 individuals across Attica and Thessaloniki, was unveiled at a specialized event orchestrated by Mr. Ilias Papageorgiadis, the head of the More Group.

In a comparative analysis with data from six months prior, the percentage of individuals expressing interest in acquiring property has notably declined from 28% to 22%. Concurrently, the proportion of sellers has also diminished, albeit from 9% to 7%. Intriguingly, of the 22% who identify as “prospective buyers,” a mere 15% are poised to execute a purchase within the immediate timeframe of six months. The responses indicate that 17.5% anticipate a purchase within a year, 26.5% within three years, and a substantial 39.5% are contemplating a purchase “in the future.” A significant 69.5% of these individuals are primarily motivated by the desire to fulfill their housing needs, while 29% are inclined towards investment opportunities.

Moreover, a noteworthy decline has been observed in the percentage of sellers compelled to liquidate their properties to meet financial obligations, plummeting from 47% last May to a mere 31%. This trend suggests that the asking prices for properties may exhibit greater rigidity in the forthcoming period, as the majority of sellers are not under financial duress.

The Barometer data further elucidates that 71% of prospective buyers are operating within a budgetary framework of €50,000 to €200,000, with a particular emphasis on the €100,000 to €150,000 bracket, which captures the interest of 29.5% of potential buyers. In stark contrast, only 4.5% are in pursuit of properties exceeding €300,000. Interestingly, the buying public harbors expectations of a price surge, with 51% anticipating an increase within the next 12 months, while 45% maintain that interest in the housing market will remain robust in the near future.

Turning our attention to the preferences of foreign buyers, it is evident that they gravitate towards more expensive and typically larger residences in Attica compared to their Greek counterparts. According to a pertinent survey conducted by Spitogatos.gr, foreigners are seeking properties with an average asking price of €231,625, juxtaposed with €216,688 for Greeks. Notably, Greeks exhibit a willingness to pay 10% more than foreigners for housing in central Athens. Conversely, in the southern suburbs, the disparity is even more pronounced, with foreigners pursuing homes that are 35% pricier than those sought by Greeks. Specifically, Greeks are inclined towards properties priced at €280,000 with an area of 92 square meters, while foreigners are targeting residences priced at €380,000 with an area of 110 square meters, primarily for investment purposes.

A similar trend is observable in the rental market, where foreigners are seeking properties with an average monthly rent of €787, compared to €668 for Greeks. High-demand rental areas, as per Spitogatos.gr data, include Athens, Kallithea, Chalandri, Glyfada, Nea Smyrni, and Piraeus. The list is rounded out by Maroussi, Zografou, Palaio Faliro, and Ilioupoli, the latter being conveniently located near Elliniko.

In terms of the housing market, the burgeoning demand for properties in the Piraeus area is corroborated by both foreign investors attracted by the “golden visa” program and Greek buyers, spurred by the introduction of metro services. Consequently, Piraeus has ascended to the fifth most sought-after location this year, a notable rise from its previous ranking of seventh in 2022. The central districts of Athens and Glyfada consistently maintain their positions as the top two choices, while the northern and southern suburbs, along with the city center, dominate the rankings of the most desirable areas for home purchases.

Regarding land acquisition, the central area of Athens retains its supremacy, while there is a marked increase in interest in the northern suburbs, particularly Kifissia, which has surged to second place from sixth in 2023, and Chalandri, now occupying the second position overall. For the first time in recent years, there is also a burgeoning interest in land purchases in more remote locales, such as Artemida (Loutsa), which ranks fifth, Vari-Varkiza in seventh place, and Markopoulo, which has entered the top ten at the tenth position.