Resale Property prices in Greece are appreciating faster: 2023 Trends.
The Central Bank of Greece has recently released an overview of the real estate market’s performance in the country for the second quarter of 2023, highlighting an extremely interesting trend. Apartment prices are experiencing an even more rapid surge compared to the previous years 2021-2022, with the primary focus of buyers centered on offerings in the secondary real estate market. According to statistics, this particularly robust growth is notably pronounced in Thessaloniki. Nevertheless, property prices are also on the rise in Athens and other cities across Greece.
Experts attribute this positive trend and accelerated growth to the heightened interest of foreign buyers.
The Real Estate Market on the Rise
Let’s turn to the numbers. When looking at the Greek real estate market, apartment prices in the country (in nominal terms) have, on average, increased by 13.9% (on an annual basis). Let’s compare the growth rates over the past three years:
- 2021 – 7.6%
- 2022 – 11.8%
- 2023 – 13.9%
An evident upward trend is apparent. The growth is steady, and experts lean towards the belief that it will continue.
Resale vs. New Builds: What’s Appreciating Faster?
Statistics from the Central Bank of Greece show that older apartments (in buildings constructed more than 5 years ago) are appreciating slightly faster than new ones (built within the last 5 years). For example, if new housing saw a year-on-year increase of 13.8%, resale properties rose by 14.1%.
However, the difference is not substantial, at just 0.3%. New construction is undoubtedly also in high demand. In the Greek market, there is an ongoing increase in buyer interest and, consequently, property values for new housing as well.
Nevertheless, the higher interest in the resale real estate market is not a statistical mistake. Let’s look at the data from the past three years:
- 2021: Price growth for older apartments in Greece – 8.2%; price growth for new apartments – 7.2%; overall market growth – 7.6%.
- 2022: Price growth for older apartments in Greece – 12.4%; price growth for new apartments – 11.4%; overall market growth – 11.8%.
- 2023: Price growth for older apartments in Greece – 14.1%; price growth for new apartments – 13.8%; overall market growth – 13.9%.
Clearly, the entire Greek real estate market is undoubtedly growing, with both older and newer properties appreciating. The investment climate is positive, and prospects for further growth are very promising. However, those who invested in the resale market have seen slightly higher price gains.
Thessaloniki, Athens, and Other Greek Cities: Price Growth Dynamics in Greek Regions
According to data from the Central Bank of Greece, the most appealing residential real estate area for buyers is in Thessaloniki.
Here, as statistics show, apartment prices have risen by 16.4% compared to the same period in 2022.
Price growth in Athens, the capital of Greece, also outpaces the market. Apartments in Athens have become 14.1% more expensive.
It is evident that apartment prices are rising faster in cities. During the examined period, prices in Greek cities increased on average by 14.6%. In non-urban locations, the growth is slightly lower at 12.1%. This is quite understandable, as buyers primarily consider places with a rich social infrastructure.
Nevertheless, a 12.1% growth rate is also quite impressive. Tranquil, peaceful, and secluded spots in Greece, renowned for their splendid nature and extended resort season, are highly popular and thus, appealing for investment.
The picture over two years looks like this:
Price growth in 2022 – 13.8%.
in 2023 – 16.4%.
Price growth in 2022 – 12.6%.
in 2023 – 14.1%.
- Other Greek cities.
Price growth in 2022 – 10.9%.
in 2023 – 14.6%.
- Other regions of the country.
Price growth in 2022 – 8.1%.
in 2023 – 12.1%.
In summary, let’s emphasize – 13.9% in all categories. The primary driver of this growth has been foreign demand for Greek real estate. Notaries in Greece predict that this year will break a 10-year record in terms of completed transactions. Real estate in Greece is currently at the peak of investment popularity.