How real estate prices are shaped throughout Greece according to RE/MAX Hellas

How real estate prices are shaped throughout Greece according to RE/MAX Hellas

The real estate market has returned to significant growth, two years after the emergence of the pandemic and the recession that hit the Greek economy.

According to data collected by RE/MAX Hellas from property sales that took place in 127 regions of the country, the average price increases for the year 2021 compared to 2020 are 11.4% for newly built properties up to 5 years old and 9.8% for older properties.

The increased demand and limited supply justifies the large increase in prices and proves that the Real Estate sector continues to be the safe haven for investors and interested property buyers, at a time when economic activity has been hit by the coronavirus pandemic not only in Greece but throughout the world.

The survey

RE/MAX Hellas, which is the largest real estate network in Greece with 73 offices and over 1,000 consultants, recorded an increase in the weighted residential price index in 2021 compared to the previous year in almost all regions where property sales were carried out through its network.

In particular, in a total of 60 areas of Attica, an increase of 11.2% was recorded in 2021 compared to 2020 for second-hand properties over 5 years old, while for properties older than 5 years old the increase was 12.1%

Similarly, in 31 areas of Thessaloniki, sales prices of used properties over 5 years old increased by 10.4% in one year, while for newly built properties the increases averaged 9.1%.

In areas of the region, the prices of used properties over 5 years old also had a positive sign in their change as they increased by 5.2%, while in properties up to 5 years old recorded a brave increase of 11.5.     

Three months from the beginning of 2022 and 36 days from the start of the war in Ukraine, the real estate market continues to show a growth trend, however, no one can predict what will happen if the war conflicts last for a long time and what will be the new effects on the global and Greek economy.

The developments of the war bring to the fore the possibility of risk to the global and Greek economy and as a result there is a reasonable concern about the course of the real estate market. There is no doubt how the economic consequences of the war are already visible in Greece, with corresponding increases in fuel and commodity prices affecting the purchasing power of households.

The messages

However, the messages for the next day of real estate are optimistic and encouraging as:

* Demand and sales prices are still on an upward trajectory

* Banks are opening up the mortgage pipeline further

* Greece continues to steadily attract domestic and foreign investors with the aim of exploiting real estate through short-term leases, creating hotel units and acquiring Golden Visa

* New trends in the labour market create new needs, such as the creation of digital nomads

* The warm weather, the hospitable culture, the history and the beauty of our country attract the interest of people from abroad to buy holiday homes and permanent residences, as is the case with Northern European retirees who choose the “paradise” of Greece for their home after retirement

* The pandemic seems to be in a phase of levelling off despite the occasional outbreaks

* The general economic climate is improving

All of the above come to strengthen the mood and the ability of Greeks to buy a home, proving once again that in a constantly changing environment the Real Estate market shows resilience compared to other sectors of the Greek economy and is the safest investment “haven”.