Greece Real Estate Market: Sales Rise Amid Price Hikes

Explore the resilience of Greece real estate market as property sales continue to grow, even with rising prices. Uncover the latest trends today.

In a rather intriguing turn of events, the Greece real estate market appears to be defying the odds, as property transactions continue to flourish despite an incessant surge in prices. Recent statistics reveal a remarkable 20% increase in property transfers during the first half of 2024, compared to the same timeframe in the previous year. This surge comes even as the Independent Authority for Public Revenue (AADE) reports that state revenues from realty transfers reached an impressive €302.49 million, a notable rise from €252.98 million in the first half of 2023.

The Municipality of Athens has emerged as the frontrunner in this property frenzy, boasting a staggering 3,419 real estate sales, as documented by notaries at the Registry of Real Estate Transfers. However, a slight dip in state revenues was observed in May and June, hinting at a potential slowdown in transfers during those months. Nevertheless, the government’s newly announced measures could serve as a catalyst for revitalizing the market, particularly with the re-freezing of value-added tax on new constructions and the rumored suspension of capital gains tax on real estate sales.

In an unexpected twist, while real estate transfers are on the rise, inheritances, donations, and parental benefits have taken a hit, plummeting to approximately €109.76 million in the first half of the year, down from €124.06 million in the same period last year—a decrease of 12%. Overall, the state has amassed €412 million from property sales, parental benefits, and donations combined.

The government is optimistic that the forthcoming changes, particularly regarding the My Home 2 and Renovate-Rent programs, will further stimulate real estate transfers. Set to launch in January, the My Home 2 initiative promises a low-interest mortgage scheme for first-time homebuyers, with a tantalizing offer of 50% interest-free loans funded by the Recovery Fund, while the remaining 50% will be covered by traditional bank loans.

While the Greece real estate market navigates the choppy waters of rising prices and fluctuating revenues, it remains a vibrant arena, poised for potential growth and transformation in the coming months.