The Greek property market has made a strong recovery from the pandemic. This year has seen significant growth for real estate, especially in Athens.
Athens leads the way on property market growth.
The Bank of Greece have released data on the property market for the third quarter of 2022. The data shows that in the third quarter of 2022, the annual rate of change in apartment prices for the entire country stood at 11.2%. Growth rates were 10.2% in the second quarter of 2022. Property is a crucial part of the Greek economy. Homeownership stands at about 73.5%, above the euro zone average of 66%.
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The type of property matters…
Table showing changes to Greek property market by age of property, source the Bank of Greece.
Greece has a combination of traditional villas, old apartments, and shiny new developments. While there has been growth in the property market overall, there are significant differences the growth rates for different properties.
Old apartments saw a growth rate of 10.5%. New apartments saw a growth rate of 12.2%.
If you are looking for a property in Greece, whether you go for an old or new one is probably down to a matter of taste and price.
An older one-bedroom property can cost you as little as €50,000, even in sought-out areas like Agois Nikolaos. If you are moving to Greece for a simpler, more rustic lifestyle, then this is quite a promising option. However, many of these properties need considerable renovation, so it’s unlikely that you will purchase for €50,000 and then that will be it from your purse. If you are passionate about renovation, then these properties might be for you. You could turn the apartment around for your own benefit or rent it out as a holiday home. It could be your project. And after all, who doesn’t love an impressive before and after picture?
For a new build one-bedroom apartment, prices are much more varied. They are dependent on the location of the property, as well the facilities provided. All these things will add to the price: gated community, communal swimming pool, nearness to the beach. Moreover, the starting price would be about €150,000.
Of course, what may really appeal is a property in between. Somewhere that isn’t so shiny that it comes with a very tall price tag and not somewhere that requires so much renovation that you feel exhausted just looking at. The Bank of Greece defines new properties as those which are five years old and under. So, your ideal property might be somewhere that is older than five years but also hasn’t been standing since the beginning of time, somewhere that requires manageable TLC.
Location matters too…
Table showing changes to Greek property market by geographical area, source: Bank of Greece.
Differences in growth rates weren’t just seen in property type, but in location too. In the third quarter of 2022, Athens saw the biggest year-on-year growth rate in apartment prices. For Athens, it was 13%; Thessaloniki, 11.1%; 9.4% in other cities and 8.9% in other areas of Greece. In the first and second quarter of 2022 apartment prices increased, year-on-year respectively, by 11.3% and 11.8% in Athens, 9.6% and 10.8% in Thessaloniki, 9.3% and 9.5% in other cities and 6.9% for both quarters in other areas of Greece.
Final reflections
After setbacks caused by the pandemic, the Greek property market is on a strong footing. The recent growth in Greek real estate is partly attributed to the Golden Visa scheme, enabling foreign buyers the chance to obtain a visa through a property investment. To obtain a Greek golden visa, you must invest in a property worth at least €250,000. With restrictions opening up, more foreign investment has made it to Greek shores. Furthermore, the Greek tourism market is in rude health, Greece was one of the top 3 destinations in Europe this summer. Hopefully, Greece will continue on this trajectory for 2023.
