Greek houses are becoming inaccessible to the local population — study

Main conclusions

• Since the end of 2017, there has been a steady increase in housing prices in Greece. In 2024, they grew by an impressive 8.7%, which significantly outstrips the growth of disposable incomes of the population
• An analysis conducted by the Center for Planning and Economic Research (KEPE) shows that the dynamics of real estate prices are forming faster than the Greeks' ability to pay for them. This leads to a growing problem of housing affordability

The reasons for the sharp rise in prices

1. Economic recovery and investment inflows. After the financial crisis, Greece began to actively recover, increasing investments, including in the real estate sector.
2. The Golden Visa program. The launch of this initiative in 2013 attracted foreign capital, which actively bought up housing, especially in Athens, Santorini and Mykonos. This has seriously fueled demand and housing prices.

🏠 Consequences for the Greeks

• The rise in housing prices outstrips income growth, which leads to a deterioration in housing affordability for citizens.
• Residents of large cities and popular tourist areas, where foreign demand is particularly strong, are particularly affected.

Do I need to change anything?

• According to the KEPE study, in order to stabilize the market, it is necessary not only to continue economic growth, but also to implement policies aimed at curbing speculative demand.
• One way could be to expand the supply of real estate, especially in areas where prices are overheated due to speculation and tourist activity.

The recovery of the Greek real estate market is certainly a positive signal for the economy. But at the same time, the significant gap between housing prices and household incomes poses a challenge that requires political and regulatory responses.