Rising House Sale Prices in Greece Outpace Most of Europe, Eurostat Reports

House sale prices in Greece showed the third largest increase in the European Union during the first quarter of this year, according to data from Eurostat released on Thursday.

The increase amounted to 10.4%, trailing behind only Poland and Bulgaria, where prices rose annually by 18% and 16% respectively. Overall in Europe, stability prevailed with a slight increase of 1.3% in the EU, while prices in the eurozone saw a modest decline of 0.4%. Eurostat data indicated that house prices decreased in seven countries but increased in 19 others. The most significant declines were observed in Luxembourg (-10.9%), Germany (-5.7%), and France (-4.8%).

Alpha Bank’s recent analysis highlighted that Greece’s housing sales price index, published by the Bank of Greece, has surged by 66% since the third quarter of 2017, marking the market’s low point until the first quarter of this year. Annual growth averaged 13.8% in 2023 before moderating slightly to 10.4% in the initial three months of this year.

The contrasting trend with the eurozone’s price decline reflects Greece’s distinct position in the price cycle. While prices were rising in the rest of Europe, Greece experienced a period of falling prices, and vice versa. Even today, real estate prices in Greece have not fully recovered from pre-financial crisis levels.

House prices in Greece currently remain 4% below their peak in the third quarter of 2008, except in the Attica region. Following a 9.4% year-on-year increase in the first quarter of this year, house prices in Attica have surged by 85% since the start of 2017, surpassing their 2008 peak by 2.4%. This resurgence can be attributed to Greece’s economic outperformance, significant growth in tourism, and the expansion of short-term rentals.

Source: Bill Kouras//GCT