3/15/2024

Introduction

In recent years, the Greek real estate market has shown notable growth, attracting attention from both local and foreign investors. According to a recent report by the Bank of Greece, 2023 marked a particularly pronounced acceleration in apartment price growth, confirming a steady trend towards market strengthening and development. This article will analyze the main data from the report and try to identify the key factors that influenced this growth.

Main Data from the Report

Overall Price Increase

In 2023, there was an overall apartment price increase of 13.4%, significantly higher compared to the previous year, when the average growth was 11.9%. Such an increase indicates a strengthening interest in housing and an increase in the investment attractiveness of real estate in Greece.

Quarterly Price Growth

In the fourth quarter of 2023, the annual price growth rate for apartments across the country was 11.8%, also indicating a steady increase in the value of housing. Separately, the growth rate varies depending on the age of the real estate: 11.0% for new apartments and 12.4% for old apartments.

Regional Dynamics

A breakdown by region revealed differences in growth rates: 10.8% in Athens, 14.6% in Thessaloniki, 13.9% in other cities, and 11.2% in other areas of Greece. These data reflect the diversity of the market and different levels of demand depending on the region.

Comparison with 2022

For the entire year of 2023, prices for new apartments rose by an average of 12.4%, slightly lower than the growth in the previous year (12.5%). At the same time, prices for old apartments showed a more significant increase of 14.2% compared to 11.6% in 2022. This indicates an increased interest in older real estate, which may be due to its uniqueness and character.

Analysis of Trends and Prospects

The acceleration of apartment price growth in Greece in 2023 can be explained by several key factors:

– **Economic recovery after the COVID-19 pandemic**, leading to renewed interest in investing in real estate as a reliable and stable asset.
– **Growing interest from foreign investors**, especially in the context of the “Golden Visa” program, offering residency through real estate investments.
– **Limited supply**, particularly in popular tourist and urban areas, increasing competition and driving up prices.
– **Improvements in quality of life and infrastructure** in major cities and on the islands, making Greece even more attractive for living and investing.

The outlook for the Greek real estate market remains optimistic. The interest in purchasing housing is expected to remain high, especially among foreign buyers, which may contribute to further price increases. However, it is important to note that the sustainable development of the market will depend on various factors, including economic stability in the country and the world, as well as government policies in the field of real estate and investments.

Conclusion

The Bank of Greece’s report for the fourth quarter of 2023 clearly demonstrates the acceleration of apartment price growth in Greece, highlighting a steady trend towards real estate market strengthening. This acceleration reflects the growing interest in housing investments, both among the country’s citizens and foreign investors, and provides unique opportunities for companies operating in the real estate sector. Continued monitoring of market trends and adapting strategies to current conditions will be key to success in this dynamically developing market.