A phase of price and transaction stabilization is expected in the housing market in the coming months

• 30 May, 25

Over the next few months, Greece’s residential real estate market is projected to remain moderately stable, with both prices and transaction volumes showing steady trends. Real estate analysts believe demand remains strong, and transactions will likely hold steady or experience slight growth. The primary motivation for home purchases continues to be owner-occupation, while active foreign investment is driving market activity in select high-demand areas.

These findings come from a recent survey conducted by Cerved Property Services, which included 508 industry professionals—300 certified appraisers and 208 real estate consultants—from agencies across Greece.

According to the survey:

• 49% of experts expect sales prices to remain stable, while 46% foresee price increases, mostly within 5%. Only a few anticipate any price declines.
• The rental market shows a similar outlook: 47% predict a moderate rise in rents, while the rest expect stable or slightly declining rental rates.

Regarding supply and demand:

• 57% of professionals believe there is a housing shortage,
• 30% view the market as balanced, and
• Only 12.8% think there is oversupply.

As for transaction volumes:

• 47.4% expect current levels to continue,
• 41% forecast an increase, and
• 11.6% predict a decrease.

Foreign buyers continue to play a significant role in the market:

• 46.4% of experts estimate foreign buyers make up less than 20% of transactions,
• 35.6% believe the share exceeds 30%.
• In major cities and tourist hotspots, 90% of professionals report foreign buyer participation above 30%, and in regions like the Cyclades, Ionian Islands, Halkidiki, and Ermionida, that figure reaches up to 70%.

Buyer preferences are focused mainly on:

• Apartments (64%),
• Followed by single-family homes and duplexes (19.4%),
• Land plots (9.3%), and
• Vacation homes (7.6%).

Most purchases are for primary residence (61.5%), with the remaining 38.5% driven by investment purposes.

The European Banking Authority (EBA) forecasts a 4.4% rise in residential property prices in 2025, a significant slowdown compared to the 8.7% increase in 2024. From 2025 to 2027, the average annual price increase is expected to stay below 3.4%, roughly in line with inflation—signaling market stabilization after the sharp rises from 2022 to 2024.

According to the Bank of Greece, national housing price growth slowed to 6.6% in Q4 2024 (compared to 10.8% at the start of the year). In the Attica region, the increase was 6.2%. Specifically, newly built homes saw a 9.1% rise, while second-hand homes rose by 4.9%.

In terms of financing:

• Despite a 2.6% decline in the outstanding balance of new housing loans in 2024,
• The volume of new loans issued grew by 20.4%.
• However, high interest rates continue to suppress overall loan demand.

The Bank of Greece notes strong demand for high-standard and well-equipped housing, but rapid price increases are making it harder for low- and middle-income groups to access housing. To address this issue, the report emphasizes the need to:

• Accelerate real estate transactions and development processes,
• Create a national plan to promote suburban development,
• Ease pressure on urban centers, and
• Ensure a more balanced distribution of housing demand across the country.

Cre: news.b2green