Buying a home gets harder
Property prices in Greece have returned to pre-crisis levels, but there is little else to remind us of the golden era of the real estate market.
Interest rates are much higher, housing investment is low and real incomes have not yet returned to pre-crisis levels as they are gnawed away at by inflation.
The prices of building materials have reached such levels that they are already prompting the suspension of new construction, while mortgage lending cannot be compared to the pre-2010 period. As for the climate and energy crises, the cost of using one’s main residence (electricity, heating, cooling etc) has skyrocketed, especially for older properties.
Everything points to the housing problem getting even worse in the future: People seeking to buy a new home must have significant liquidity and the financial strength to cover a very high monthly mortgage payment.
If they turn to an older property to invest less, they will be faced with either the very high cost of an energy upgrade or increased heating and electricity bills, and if they choose to rent they will find the almost universal lack of available properties with a monthly rent lower than 700 euros for an apartment of 80-100 square meters which can comfortably accommodate a family of four.
