AmCham report: Property sector growth set to continue
Economic stability and ever-growing tourism are set to see the local real estate market maintain its growth in the next few months, while the main problem in the sector is the shortage of affordable housing, according to report on the Greek realty market by the American-Hellenic Chamber of Commerce released on Wednesday.
The report, titled “2024 Property Market Outlook for Greece,” notes that in 2023, the Greek economy grew by 2%, driven by investment in construction and the Recovery and Resilience Plan (RRP). The Greek real estate market is recovering after a long period of recession. Greece has positive momentum, although a slower pace is forecast, from the first half of 2024.
It adds that affordable housing is a pressing social issue and government incentives may create a new sub-category of assets.
The report, prepared by the chamber’s Real Estate & Development Committee, further points out that in the first half of 2024, the realty market showed strong performances in storage spaces, offices and hotels, while residential properties as well as short-term rental properties appeared overvalued. Positive effects included economic recovery, political stability and increased tourism, although geopolitical uncertainties, inflation and high construction costs posed challenges.
As for the next six months, the hotel, office, logistics and holiday home sectors are expected to perform well. Key drivers for this positive outlook are economic stability, quality tourism and improvements in investment, although high interest rates, inflation and geopolitical tensions remain potential headwinds, according to the report.
Committee Chairman Lefteris Sikalidis said about the report that ”as part of our commitment to provide comprehensive knowledge of the Greek real estate market, we want to offer a complete analysis of the trends and investment opportunities that exist in our country. Our goal is to support decision-making for those interested in real estate in Greece.”
