Greece Real Estate Market: Housing Supply Dwindles

Analyze the Greece real estate market as fewer houses become available for sale, influencing buyer dynamics and investment strategies.

The ongoing contraction in the inventory of residential properties available for sale in Attica has persisted into the first half of the year, plummeting to a mere 82,000 units from a staggering 150,000 just a few years prior. This phenomenon is particularly pronounced in various districts, especially those where housing prices remain within reach for the average buyer, which are now experiencing double-digit percentage declines on a year-over-year basis. 

This trend can be attributed, in part, to the conclusion of the initial phase of the My Home subsidized home purchase initiative, which successfully absorbed several thousand properties in the preceding year. As a direct consequence of this dwindling supply, property prices have continued their upward trajectory, as demand remains robust. Notably, this price escalation is evident even in locales that have seen a withdrawal of foreign investors participating in the Golden Visa program, including the once-thriving downtown Athens. 

Since August 2023, the city center has witnessed a complete halt in transactions involving Golden Visa investors, a situation precipitated by the steep increase in the investment threshold—from €250,000 to €500,000, and as of this month, soaring to €800,000, aligning with the rest of Attica. Nevertheless, projections indicate that, through June 2024, property prices are unlikely to stabilize; rather, they are poised to continue their sharp ascent.

Data derived from classified advertisements reveal a consistent annual decline in housing stock across all surface area categories during the January to June period, with corresponding increases in asking prices. For instance, the availability of apartments measuring up to 80 square meters has contracted by 15.8% compared to the first half of 2023, now totaling 23,428 units, while the average asking price has surged by 14.3%, reaching €2,360 per square meter. 

The confluence of dwindling supply, rising prices, and shifting investment landscapes paints a complex picture of the current real estate market in Attica, one that is as perplexing as it is dynamic.