AmCham: Residential properties must become more affordable

• 3 February, 26

The American–Hellenic Chamber of Commerce (AmCham) said Greece’s real estate market is facing a dual challenge of housing shortages and rising prices, pushing residential property increasingly beyond the reach of many households. The assessment comes from its latest Property Market Outlook for Greece, which reviews market performance in the second half of 2025 and outlines expectations for the first half of this year.

The report was prepared by AmCham’s Real Estate & Development Committee. It notes that during the second half of 2025, the hotel, residential, and second-home sectors performed strongly, while the office market showed signs of slowing. Residential assets were considered overvalued, reflecting a structural imbalance caused by sustained demand and insufficient housing supply.

Affordability Pressures Driven by Structural Housing Shortages

According to AmCham, Greece’s housing challenge is not solely a matter of high prices, but primarily the result of long-standing residential supply shortages, particularly in major cities and economic hubs. These pressures have been intensified by population aging, demographic shifts, and the concentration of tourism-related demand in urban areas.

The report stresses that relying on market-led price corrections alone is unlikely to materially improve housing affordability. Instead, Greece needs to attract long-term international institutional investors capable of delivering large-scale, professionally managed residential developments that support urban regeneration, expand housing supply, and enhance long-term market stability.

“More Affordable” Housing Means Increasing Supply

In AmCham’s view, making housing more affordable does not imply tax cuts or direct subsidies aimed at reducing purchase costs. Rather, the focus is on addressing the issue from the supply side by encouraging large-scale developments that can lower the average cost per unit and reduce the impact of speculative investment on the residential market.

This approach underscores that improving affordability depends on increasing the availability of long-term, livable housing, rather than relying on price adjustments in existing property stock.

Lack of Key Quantitative Data in the Report

While the report identifies housing affordability as a central challenge for the Greek property market, it does not provide sufficient quantitative data to fully assess the scale of the problem. Key indicators such as the gap between housing price growth and household income, the share of housing costs in disposable income, and the size of housing shortages in major cities are not clearly quantified.

As a result, the conclusion that housing has become unaffordable remains largely qualitative, limiting a deeper evaluation of its broader economic and social impact.

Six-Month Outlook and Ongoing Risks

Looking ahead to the next six months, AmCham expects the hotel sector, short-term rentals, and second-home markets to continue performing well, while retail and warehouse properties may experience a slowdown. Macroeconomic stability, steady GDP growth, progress in large-scale urban regeneration projects, and access to EU funding are seen as key supporting factors.

However, the report also warns that high construction costs, labor shortages, and declining housing affordability will continue to pose significant risks to the sustainable development of Greece’s residential real estate market.

Cre: Ekathimerini