Greeks opt for homes built 40 years ago
Greeks nowadays buy older and more expensive homes, compared to the previous high of the real estate market, in 2008.
The sale prices of homes in Attica are 4% higher today than 16 years ago, after the increase that has been noted since 2017. However, there is also a big difference in quality characteristics, as the average property bought by Greeks in 2008 was 20-30 years old, while today the average purchase is for a 40-year-old home, which shows that even though prices are higher, this money buys worse-quality real estate than in 2008.
The above figures were presented on Monday, as part of the annual Prodexpo real estate conference, by Vasiliki Vlachostergiou, deputy head of the Real Estate Market Analysis Department of the Bank of Greece (BoG).
As stated by Vlachostergiou, “in the same period, that is from 2008 until today, the real income of households has decreased by 20%, which makes it difficult to acquire a residence. It is clear that there is a huge shortage of quality properties to meet the needs of households, as the number of building permits issued in just one year, 2005, is comparable to the number of permits for all years from 2011 to the beginning of of 2024.”
Nikos Tsatsis, head of development at Plasis Real Estate + Development, explained that “home sales prices have increased much more than wages, so that even with a loan it is difficult to acquire a property and many are turning to more economical solutions.” Tsatsis also pointed out that the purchase of a property was a family affair in the past, as it was accompanied by significant support from the family – e.g. through donations, or even the sale of an older property. However, after the crisis, this backup has decreased and there is no real estate for sale in order to finance the purchase of a new property.
At the same time, as official figures show, the percentage of homeownership has now fallen to a historically low level. According to Vlachostergiou, from over 80% in the 1980s and 1990s, it was at 75% in the early 2000s, rose slightly to 77% at the end of the same decade, but has now fallen to just 69.6% based on the latest data from Eurostat for 2023. “I estimate that in Athens the relative percentage is lower and does not exceed 64-65%,” noted Vlachostergiou.
