Of Chrysostom Chufi

‘Flies’ the program My house 2 As it has been completed 3 months since its start, it has already given 4,256 households to acquire their first home. 520mm € have been committed, 1/4 of the total budget of the height program 2.

But things are not just rosy. In its annual report, the Bank of Greece states that the program actually My house 2 It provides access to home to vulnerable households, but further enhances the demand for older properties that fall under the specifications of the program. And real estate prices have already increased rapidly in recent years with a negative impact on how accessible they can be for medium and low incomes. In other words, the central bank justifies those who argue that the program besides the good it does, It also increases demand; therefore the values According to market laws, as new properties do not enter the “mixture” or get much less.

And the initiatives to tighten its operating framework Golden Visabut they work in supportive but they cannot solve the problem.

The increase of energy costthe increase in material and his cost new real estate (3.7% last year, 6.2% in 2023) geopolitical uncertainty probably intensified in conjunction with timeless issues bureaucracy in the transfers and frequent changes in legislative and tax framework They are still deterrent to the entry of new real estate into the market.

Since demand (and abroad with applications for Golden Visa increased by 11.3% and revenue for real estate purchase by 29%) will continue to increase faster than the offer, the central bank expects that real estate prices will continue and at least. According to the information available 8.7% was raising prices in 202413.9% in 2023 and 11.9% in 2022.
It is noteworthy that in the last quarter of last year the property price index has reached only 0.4% from the 2008 quarter history and it is a matter of time to exceed it. If we get only the newly built, we are already 5.6% above the historical high.

To deal with her housing crisis and the imbalance in the market, therefore according to the BoG, further interventions are required in the direction of the simplification and acceleration Procedures related to traders but also a national strategic planning aimed at the financial and business support of the region, the congestion of metropolitan centers and to ensure better dispersion of demand for home throughout the country.