Discover how Attica’s house sales prices soared 90% since 2017, surpassing 2008 levels. Explore the latest trends in Greece real estate.
Greece’s real estate market has experienced a remarkable transformation over the past eight years, particularly in the Attica region, where property prices have surged by an astonishing 90%. This meteoric rise can be traced back to 2017, when the market began its recovery, culminating in the third quarter of this year. According to meticulously analyzed data from the Bank of Greece (BoG), current prices have eclipsed the previous market zenith of 2008 by 5.2%.
A recent report from Kathimerini highlights that, on a national scale, property prices have risen by 71.6% during the same timeframe, now tantalizingly close—just 1.3%—to the 2008 peak. Notably, newly constructed properties, those less than five years old, have seen an impressive increase of 77%, surpassing the previous high by 3.7%. In stark contrast, older constructions, defined as those over five years, have experienced a more modest increase of 67.8%, leaving them 4.4% below the 2008 benchmark.
In Thessaloniki, the property price increase stands at 84.6%, with the average selling price still trailing the previous high by 1.67%. Meanwhile, other major cities have recorded a cumulative increase of 51.5%, yet their prices remain 9.15% lower than in 2008. This discrepancy can be attributed to the relatively smaller decline these cities experienced during the economic crisis, resulting in a correspondingly tempered recovery.
The data presented is a vivid illustration of the pronounced escalation in property values, particularly in Attica, where a confluence of domestic and international demand has ignited a “rally” reminiscent of the early 2000s, albeit with distinct characteristics. Prior to the financial crisis, demand was predominantly domestic, buoyed by an influx of bank lending that ultimately led to disastrous consequences. It is noteworthy that over 80% of home purchases were financed through bank loans during that period.
In a striking reversal, the current landscape reveals that a significant portion of demand—especially between 2019 and 2023—originates from abroad. This surge can be attributed to the allure of the “golden visa” program, the proliferation of short-term rentals, and the relatively low property prices in Greece compared to other countries, where real estate values have steadily climbed throughout Greece’s own crisis and recession.
Today, approximately 80% of transactions are conducted without the involvement of the banking system. Even Greek real estate buyers are increasingly financing their property acquisitions through personal savings accumulated over the years or through the sale of other assets, such as vacation homes.
According to the latest data released by the Bank of Greece, the housing market experienced a nationwide price increase of 7.8% in the third quarter of this year. This marks the fifth consecutive quarter of decelerating price growth. To put this into perspective, the growth rate was 12.7% in the third quarter of 2023, down from 13.8% in the preceding quarter. This year, the annual growth rates have been recorded at 10.6% (first quarter), 9.4% (second quarter), and 7.8% (third quarter).
A similar trend is evident across other categories monitored by the Bank of Greece’s indices. Newly built properties saw a 9.7% increase in the third quarter, a decline from 10.8% in the previous quarter and 11.1% in the first quarter of 2024. Meanwhile, the prices of older apartments have risen at the slowest pace in two years, with a year-on-year increase of 6.6%, compared to 8.5% in the second quarter and 10.3% in the first quarter of this year. In Attica, the annual increase in house sales prices reached 7.7%, while Thessaloniki saw a more robust increase of 12.1%. In contrast, other major cities recorded increases of no more than 4.9% compared to the same period last year.
