Greece’s Housing Crisis Shows No Signs of Easing in 2025

Greece’s housing crisis is expected to continue into 2025 as the cost of purchasing and renting remains high and disposable income falls, according to an article at OT.gr.

According to data from the Bank of Greece, in Q3 2024, the residential property price index had decreased by only 1.3% compared to the peak recorded in Q3 2008 but surged by 71.4% compared to the low in Q3 2017.

Housing Crisis In Attica
Attica, the region most affected by the housing crisis, has already surpassed its previous price peak. In Q3 2024, the price index reached 106.7, compared to 101.4 in Q2 2008. Since the market recovery began in 2017, prices have increased by nearly 90%.

At the same time, OECD data indicates that Greek households’ real disposable income dropped by 23.7% between 2009 and Q2 2024.

Housing Market Dynamics
The dramatic price hikes are attributed to a severe imbalance in supply and demand.

Prospective buyers outnumber sellers by at least two to one, as shown by the 3rd “Real Estate Market Barometer,” presented by Ilias Papageorgiadis.

The biannual Barometer, conducted in November and May, reveals that the percentage of property owners willing to sell has declined to 7% from 9% six months earlier. Meanwhile, the percentage of potential buyers has dropped to 22%, down from 28% in May.

Of the 22% who identify as prospective buyers, only 15% plan to purchase within six months, 17.5% within a year, 26.5% within three years, and 39.5% at an unspecified future date.

Seller Incentives and Price Rigidity
The motivations driving sellers have shifted, influencing price rigidity. Sellers needing to liquidate properties to address other financial needs dropped from 47% in May 2024 to 31% in November.

Budget Insights
Most potential buyers (71%) are looking for properties priced between €50,000 and €200,000, with 29.5% targeting the €100,000–€150,000 range. Only 4.5% are seeking properties over €300,000.

Addressing the Supply Shortage
Papageorgiadis highlights the massive number of vacant or unoccupied homes in Greece—estimated at nearly 800,000 nationwide in 2021, with 255,300 in Attica alone.

To address this issue, he advocates for a “Planning Amnesty,” supported by the Panhellenic Federation of Property Owners (POMIDA). This initiative would allow sellers to transfer properties with unresolved planning issues, giving buyers a three-year window to address them, potentially unlocking thousands of properties currently unavailable for sale.

The Rental Market Struggle
In a country with the highest property-to-population ratio in the OECD, finding a reasonably priced, energy-efficient rental property that meets basic climate standards has become an uphill battle.

Rental supply is limited, and the asking price for rents has increased by over 50% in the last five years. The prevalence of short-term rentals, especially in central Athens, and thousands of properties under bank and servicer control contribute to the scarcity.

EU Housing Costs Leadership
Greek households face the highest housing cost burden in the EU. On average, 35.2% of disposable income goes to rent, mortgage payments, and utilities, compared to the EU average of 19.7%.

Greece also has the highest percentage of its population burdened by excessive housing costs in the EU. In urban centers, this figure reaches 31%, compared to the EU average of 10%. For renters, the proportion approaches 80%.