2024 was a year of significant developments and challenges for the real estate market in Greece. Demand remained high, keeping prices at consistently high levels for another year.

Lefteris Potamianos, managing director of Potamianos Real Estate Group, underlines that market conditions today are shaped by a number of factors, which determine both the choices of buyers and the strategies of industry professionals.

Demand dynamics and market implications

Despite forecasts of falling prices, property values ​​in Greece have maintained and will maintain their stability, with some areas continuing to their upward trajectoryalthough with reduced rates. The main reason is the imbalance between supply and demand. As estimated by Mr. Potamianos, the category of small and medium incomes, which dominates the Greek market, is of particular interest. Most Greek buyers are looking for properties up to 120 sq.m., with a sale price of up to 400,000-450,000 euros. On the contrary, foreign investors show a preference for luxury country houses, at much higher prices and with more square footage. Demand from foreign investors is further boosting the market. Areas around Athens, such as Saronikos and Evia, are of particular interest for investment, with many sales involving holiday homes.

There are no more opportunities in Athenssays Mr. Potamianos, as the cost per square meter ranges from 1,700 to 1,800 euros, even in areas that were traditionally considered more accessible, such as Patisia and Kypseli. Opportunities are now in the periphery.

Renovation as a factor of goodwill

The condition and quality of the property have become determining factors for its value. The renovated properties are in high demandas most buyers shy away from old properties due to the cost and complexity of renovation work. “Renovation can add up to 20% to the value of a property, while its cost now exceeds 1,000-1,200 euros per square meter,” points out Mr. Potamianos. However, the lack of a sufficient labor force for renovations, due to being absorbed by large development projects, combined with the time-consuming process, are disincentives to buy houses that are in poor condition.

State intervention and management of bank-owned real estate could provide breathing space to the market. “Disposing of bank-owned real estate could boost supply and lead to price stabilization,” notes Mr. Potamianos. It refers to properties that have come into the possession of banks and are in the process of settling legal issues, so that they can be put on the market, and not to properties that are put up for auction. Programs such as “My House II” are expected to boost demand, particularly for small and medium-sized housing.

Planning issues and legal procedures

The Greek real estate market continues to face problems related to urban planning, the electronic identity of real estate and legal settlement procedures. “The creation of a single entity for property management, which will coordinate the action of several ministries, is necessary to address these challenges”suggests Mr. Potamianos.

One of the worrying phenomena is the creation of a two-speed market due to the decisions of the Council of Ministers, which are estimated to be clarified in the coming days. The differences that arise by municipality and state of construction are affected by the recent decision of the Council of State, creating unequal competition in the real estate market.

Buyer profile and financing method

Greek buyers are divided into two main categories:

  • Younger people aged 40-45, who rely mainly on their own incomes and the financial support of their parents.
  • Seniors aged 55-60, who use money from inheritances or savings to buy mainly holiday homes.

A notable fact is that approx 80% of transactions are done in cashwhich differentiates today’s market from the pre-crisis period, where loans were the main source of funding.

The Greek real estate market remains dynamic, with the region offering opportunities for investment and prices in urban centers maintaining high levels. Increasing supply through the utilization of banks’ “frozen” real estate, solving urban planning issues and incentivizing renovation could balance the market.

Mr. Potamianos concludes: “Prices should be kept at reasonable levels so that transactions are feasible for all. Working with brokers and appraisers is essential as industry professionals can guide buyers and sellers to achieve fair and speedy transactions.”