Athens is now one of the five most expensive cities to buy a property, based on the purchasing power of Greek households.

In particular, it is ranked fifth, as it takes 11 years for a worker with an average salary to acquire a 20-30-year-old apartment of 60 sq.m. that household labor incomes did not increase at the same rate.

Just three years ago, 8.5 years of wages were required for the same property, which is in line with the European average.

In the London category

Characteristic of how much more difficult it is to access the housing market for Greeks is that it is more expensive to acquire a property only in Tel Aviv, Paris, Tokyo and Hong Kong. At the same time, Athens is now on par with London, while surpassing cities such as Munich, Zurich, Geneva, Amsterdam, Vancouver, Frankfurt, Dubai, Los Angeles, Stockholm and Miami.

The above is based on a relevant analysis by Cerved Property Services, combining data from “Ergani” and UBS. The research was presented yesterday in the context of the 17th RED Meeting Point by Mr. Dimitris Andritsos, CEO of the company. It is typical that in 2018 the average selling price of a residence in Greece was 175,000 euros, while the average monthly salary was 1,071 euros. By 2023 the average selling price of a home had shot up by 57% to 274,831 euros, while, on the contrary, the average salary in the same period increased by only 19.5%.

It is certainly an “open secret” that a percentage of Greeks’ incomes are understated, as more than 50% declare an income of less than 10,000 euros. In fact, as it appears based on the data from the declarations of the self-employed, 64% declared incomes up to 10,000 euros in 2023, while almost 1 in 2 (45%) less than 5,000 euros. Therefore it is clear that a lot of the income is not declared to the tax office, with the result that the overall average also decreases. But this does not negate the fact that wage earners in particular have seen their purchasing power drop dramatically, even after recent wage increases.

This is also certified based on other indicators. For example, based on price/m2, the housing market in Greece is among the cheapest in Europe, costing 2,200 euros/m2, being more expensive only than Latvia, Romania and Bulgaria.

The most expensive market is that of Switzerland, where the average price/sq.m. it reaches 15,000 euros, but because salaries are also much higher, in the end the purchase of property by citizens is more accessible compared to Greece and especially the market in Athens.

They live in smaller houses than they want

Negative is the psychology that has formed in public opinion regarding the housing market and the economy in general, as can be seen from a relevant survey by Metron Analysis, which was carried out on behalf of Update Entertainment with the help of the Athens-Attica Realtors Association.

It shows that only one in three respondents has managed to save money in the last two years and mainly the younger age group up to 44 years old. At the same time, two out of three believe that things are going in the wrong direction and 38% that they are personally in a worse position compared to a year ago. Also, 58% evaluate the current economic situation of the country negatively, while 51% express negative expectations regarding the economic conditions in the next period.

Among those who rent (34%), 37% consider that the amount of rent has increased a lot and an additional 37% that it has increased, but a little.

However, eight in ten say rising rental property prices have hit their living costs, while 73% believe prices will continue to rise in the coming years. In fact, 40% of tenants report that rents are overpriced, while most consider that rent prices do not correspond to the value of the properties. Regarding the criteria for choosing a rental home, the safety of the area and the renovated building seem to take precedence. Particularly important is the fact that there is a significant discrepancy between the surface of the current and the ideal residence, a sign that Greeks live in houses that do not meet “their needs”.

For the tenants, the difference between the present and the ideal residence is 25 sq.m., as they live in 69 sq.m. instead of 94 sq.m. that they would like, while the deviation for home owners, who live in 96 sq.m., is similar (25 sq.m.). instead of 121 sq.m.

When it comes to the housing market, 70% estimate that house market prices will rise in the coming years (similar to the 73% who make the same prediction for rents). Also, although buying a home is generally considered a good investment for 66%, only 10% personally consider it very likely in the next five years.