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Greek residential property price recovery picks up in third quarter
Published by Jessica Weisman-Pitts
Posted on November 29, 2022
2 min readLast updated: February 3, 2026
Global Banking & Finance Review®
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Published by Jessica Weisman-Pitts
Posted on November 29, 2022
2 min readLast updated: February 3, 2026
By George Georgiopoulos
ATHENS (Reuters) – A recovery in Greece’s residential real estate market picked up pace in the third quarter, as the economy continued to expand and inflation rose near a three-decade high, central bank data showed on Tuesday.
Property makes up a big chunk of household wealth in Greece, where the home ownership rate is about 73.5%, above the euro zone average of 66%, according to European Union statistics on income and living conditions.
Greece’s housing sector recovery has been driven by an expanding economy and foreign interest.
Apartment prices rose 11.2% in the third quarter from the corresponding period a year earlier, Bank of Greece data showed, and the pace was up from a 10.1% increase in the second quarter.
The uptrend benefited all areas of the market, including old and newly built apartments, and all regions, although price gains in capital Athens led the way.
Prices rose by 13% year-on-year in Athens, where home-sharing platforms such as Airbnb and a “golden visa” programme – a renewable five-year resident’s permit in return for a 250,000-euro ($285,000) investment in real estate – became popular.
Greece’s economy grew at an annual 7.7% clip in the second quarter, beating forecasts, but slowing from a pace of 8.0% in the first quarter, on strong consumer spending and investments.
Consumer inflation accelerated to 12.0% in September, near a three-decade high, after surging costs for energy, housing, transport and food.
House prices fell 42% between 2008 – when a protracted recession began – and the end of 2017. The market was hit by property taxes imposed to plug budget deficits, tight bank lending and a jobless rate that peaked at 27.8% in 2013.
Economic prospects improved later, with Greece emerging from its latest bailout in August 2018 and now accessing international markets for funding.
Following is a table on Greek apartment prices from Greece’s central bank:
**************************************************************
2016 2017 2018 2020 2021 Q3
Index 59.6 59.0 60.1 67.3 72.4 81.9
Change y/y % -2.4 -1.0 1.8 4.5 7.8 11.2
New (up to 5 years) 61.2 60.7 61.9 70.0 75.7 86.0
Change % -3.0 -0.8 2.0 4.9 8.1 12.2
Old (older than 5 years) 58.6 57.9 58.9 65.6 70.4 79.4
Change % -2.0 -1.2 1.7 4.2 7.2 10.5
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source: Bank of Greece
(Reporting by George Georgiopoulos; Editing by Clarence Fernandez)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured as an annual percentage increase.
A central bank is a financial institution that manages a country's currency, money supply, and interest rates. It also oversees the banking system and implements monetary policy.
Home ownership refers to the condition of owning a home rather than renting it. It is often viewed as a key indicator of economic stability and personal wealth.
Property prices are the amounts of money required to purchase real estate. These prices can fluctuate based on market conditions, demand, and economic factors.
The housing market is the supply and demand for residential properties. It encompasses various factors including property prices, sales volume, and the availability of homes for sale.
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