Greece Real Estate: Growth Amid Affordable Housing Crisis

Economic stability and tourism boost Greece real estate, but a shortage of affordable housing poses challenges, says the American-Hellenic Chamber report.

Economic stability, coupled with an ever-expanding tourism sector, is poised to sustain the growth trajectory of the local real estate market in the forthcoming months. However, a significant challenge looms over the sector: the acute shortage of affordable housing. This insight emerges from a report on the Greece real estate market, published by the American-Hellenic Chamber of Commerce on Wednesday.

Titled “2024 Property Market Outlook for Greece,” the report highlights that the Greek economy experienced a commendable growth rate of 2% in 2023, primarily fueled by robust investments in construction and the implementation of the Recovery and Resilience Plan (RRP). After enduring a prolonged recession, the Greece real estate market is on the mend, exhibiting positive momentum, albeit at a tempered pace anticipated for the first half of 2024.

The report underscores the pressing nature of affordable housing as a social issue, suggesting that government incentives could potentially engender a new sub-category of real estate assets. Compiled by the chamber’s Real Estate & Development Committee, the report further elucidates that during the first half of 2024, the realty market demonstrated commendable performance in sectors such as storage spaces, offices, and hotels. In contrast, residential properties and short-term rental units appeared to be overvalued, raising eyebrows among investors.

The positive influences on the market include economic recovery, political stability, and a surge in tourism. However, the landscape is not devoid of challenges; geopolitical uncertainties, inflationary pressures, and elevated construction costs present formidable obstacles.

Looking ahead to the next six months, the hotel, office, logistics, and holiday home sectors are projected to thrive. The key drivers behind this optimistic outlook encompass economic stability, high-quality tourism, and enhancements in investment. Nevertheless, potential headwinds such as high interest rates, persistent inflation, and geopolitical tensions could temper this growth, as noted in the report.