House price growth slows down

• 4 April, 25

Last year residential rates expanded by 8.7% from 2023 across Greece, per the central bank

House prices showed an increase of 6.6% nationwide and 6.2% in Attica in the fourth quarter of 2024, according to the indices compiled by the Bank of Greece. The growth rate continued to slow in Q4 although it certainly remains significantly above inflation. Overall in 2024, the average price increase nationwide was 8.7%, but the slowdown is evident, given the 10.8% rise in the first quarter. In Attica, the average annual rise reached 8.2%, down from 13.9% in 2023. In Thessaloniki, the annual growth in October-December was 8.2%, and overall in 2024, prices recorded an increase of 11.2%, while in 2023 the escalation had reached 16.6%.

A similar picture emerged for the rest of the country: In the other major cities, the annual increase in 2024 was 7.1%, down from 15% in 2023 (and 4.6% in the fourth quarter), while in the other areas (mainly touristic), the average annual change in 2024 was 10.6%, against 11.6% in 2023 and 8.7% in the fourth quarter of 2024.

As for newly built properties, the nationwide growth in Q4 was 9.1%, and 10.1% overall in the year compared to 12.9% in 2023. A significantly smaller rise was recorded in second-hand home prices, as the increase in the fourth quarter was limited to just 4.9%, down from 7.1% in the preceding quarter and 7.8% overall in 2024, while in 2023 their prices had increased at almost double the rate, 14.5%.

Property market sources say the slowdown, especially in Attica, is a result of reduced purchasing demand compared to 2023, when the first cycle of the “My Home” program had maintained the volume of purchases and sales at a high level. On the contrary, in 2024 this factor disappeared, so prices continued their upward trajectory due to the fact that supply is even more deficient compared to demand; however, it appeares that it is difficult to impose new large increases on sales prices. This seems to be due to the fact that the majority of domestic buyers are looking for properties worth up to 200,000-250,000 euros, which are increasingly difficult to find, especially in Attica.

Cre: ekathimerini