Greek Homes: Still a Dream, but Getting Harder to Reach

Owning a home is a dream for many Greeks, but it’s becoming increasingly difficult to achieve.

A recent survey by Focus Bari highlights that despite economic worries and rising costs, owning property remains a key financial goal for many Greeks. Yet the growing popularity of short-term rentals and the limited housing supply are fueling a housing crisis, particularly in cities.

For many Greeks, owning property remains a dream and a cornerstone of financial security. Despite the economic pressures, Focus Bari’s research shows that about 1 in 5 Greeks are considering buying property in the next one to two years.

Real estate is still considered a relatively safe investment in Greece. Focus Bari’s survey found that 35% of people view real estate as a “safe investment”, while 42% see it as “medium risk”.

However, many of those potential homeowners may find it out of reach. About a third of Greeks say their income doesn’t cover their basic needs, and half of the population is just barely scraping by.

Economic concerns are at the forefront of most Greeks’ minds, with a staggering 86% expressing anxiety about the financial situation.

The study also found that 64% of Greeks agree that rents are far too high compared to incomes. A recent report from the Bank of Greece confirms this, stating that rising demand and limited supply are pushing rental prices even higher, especially in cities where housing is already scarce.

Additionally the rise of short-term rentals, particularly through platforms like Airbnb, is complicating matters.

In tourist hotspots like Athens, Focus Bari estimates that over 205,000 properties are listed on Airbnb. While this provides a source of income for some property owners, it is also shrinking the pool of homes available for long-term renters.

The Bank of Greece is also sounding the alarm about this worsening housing crisis. The bank points to soaring rental prices and a shortage of available homes, which it attributes to the increasingly investment-driven nature of the real estate market. More properties are being bought up for short-term rentals and speculative investments, leaving fewer options for locals in need of long-term housing.

The Greek government is offering tax incentives to property owners who convert short-term rentals into long-term leases. This initiative is part of a broader plan to tackle the housing crisis and ease pressure on the rental market.

A Kapa Research survey found that 70% of Greeks are concerned about the impact of Airbnb on housing availability and rental costs, with 67% specifically worried about the high rents.

According to the Focus Bari survey, about half of the Greek population (50%) owns a home, which aligns with the global average. However, 35% of Greeks are renting homes—this is a much larger portion than the 27% global average.

According to Focus Bari, 53% of Greeek property owners have a primary residence, 20% own a holiday or family home, and 8% own investment properties. On average, property owners in Greece own about 1.8 properties, with most living in homes ranging from 51 to 120 square meters.

The survey also reveals that nearly a third of homeowners are still paying off a mortgage, with an average monthly payment of €500. Wealthier households are more likely to own multiple properties, including secondary ones like vacation homes or investment rentals.

Kapa Research notes that vacant homes remain a persistent problem, with 13% of homeowners reporting at least one empty property. These unused homes are contributing to the ongoing housing shortage.

Source: tovima.com