Property Prices in Attica Doubled Since 2017

• 27 September, 25

According to the latest data from the Bank of Greece, housing prices in the Attica region have soared by 100% since 2017, doubling from post-crisis lows to reach record highs in Q2 2025. Nationwide, residential property prices rose 82%, while Thessaloniki recorded a 95% increase, underscoring the strong recovery of the Greek housing market.

Attica Housing Prices Hit Record Levels

As of mid-2025, housing prices in Attica are 10.6% higher than the 2008 peak.

• In Thessaloniki, prices are only 2.7% above their 2008 levels
• Nationwide, prices are 5.2% above the 2008 peak

This confirms a robust rebound in the Greek property market since 2017.

Q2 2025: Price Growth Accelerates

In Q2 2025, nationwide housing sales prices increased by 7.3% year-on-year, faster than the under-7% growth in Q1.

• Attica: growth rose from 5.2% in Q1 to 5.9% in Q2
• Other major cities: from 7.7% to 8.5%
• Thessaloniki: growth slowed slightly, from 10.1% to 8.8%

Second-Hand Homes Outpace New Properties

The data reveals stronger demand for older properties:

• Second-hand homes (over 5 years old): prices rose 7.6% YoY (up from 6.4% in Q1)
• New homes (under 5 years old): prices rose 6.8% YoY (down from 7.6% in Q1)

“My Home II” Program Fuels Second-Hand Housing Demand

A key driver of rising prices is the “My Home II” (Σπίτι Μου) housing scheme:

• Offers favorable mortgages for buyers under 50 years old
• Eligible properties: homes licensed before end-2005 and completed before end-2007
• Property price cap: €250,000, with a loan limit of €190,000

As a result, demand has concentrated on 20+ year-old second-hand homes, directly pushing prices higher in this segment.

Market Concerns: Overvaluation & Appraisal Gaps

Industry experts warn that the program is distorting the market:

• Without mortgage support, some homes should sell for 10–15% less
• The €250,000 cap has become a “price magnet,” with properties previously priced at €170K–€200K now listed at €250K
• Bank valuations often fall below transaction prices, forcing buyers to contribute more equity to cover the gap

Cre: capital.gr