Rising real estate prices in Greece - Bank of Greece warning

In its latest note on the Greek economy (May 2, 2025), the BoG captures the prevailing trends: average annual increase in apartment prices was 6.6% in Q2 2024, up from 9.6% in Q3. Although this is the seventh consecutive quarter of slowdown, the overall price increase from the 2017 low is now +73%, approaching 2008 levels. Despite the relative “fatigue,” prices are still on an upward trajectory.

According to the latest available data, manufacturing activity increased by 29.1% at the end of 2024. But as a percentage of GDP, investment in housing remains at just 2.7% – lower than the European average, indicating that new construction is not sufficient to meet demand.

The supply of good, modern and energy-efficient housing is limited, which the BoG says exacerbates the problem of affordable housing, especially for younger households.

The picture is more pronounced in commercial properties. Office prices rose 4.2% in the first half of 2024, while retail prices rose 7.8%. Rents also strengthened: +2.2% for offices, +6.2% for shops.

Demand is mainly concentrated on quality properties in high visibility or tourist areas. On the contrary, small and medium-sized enterprises are facing difficulties in finding premises with affordable lease terms.

The BoG stresses that there are no signs of overheating or bubble in the market. However, it clearly documents structural pressures on accessibility, stagnant supply and the need for targeted housing policy. As it says in its note, “accelerating new construction and supporting affordable housing will be critical factors in the next phase of the market.”