Home buyers stuck in a rut
Most aspiring Greek homeowners are finding it increasingly difficult to find a property they can afford. The biggest obstacle they must overcome is not so much the increase in mortgage interest rates as the sharp spike in sales prices.
That also means a large increase in buyers’ participation, negatively affecting demand that has already started to lead to a decrease in transactions, market sources report.
According to the latest data from the Bank of Greece, nationwide average annual growth in 2023 amounted to 13.8% compared to an increase of 11.9% in 2022. The prices of old apartments increased by 14.5%, compared to an increase of 11.6% in 2022, while newly built apartments saw an average annual increase of 12.7%, compared to an increase of 12.5% in 2022. Accordingly, in the first quarter of 2024 the average annual price increase amounted to 10.4%.
Notably, from the beginning of 2017 until the first quarter of this year, the increase in house prices nationwide came to 66%, while in Attica the increase in prices was even greater, amounting to 85%.
Therefore, interested buyers find that the present situation is particularly difficult for the acquisition of a residence, even if they meet the requirements for a mortgage.
