Greece’s real estate market is faced with “spiralling prices” which will very soon bring real estate prices, especially newly built homes, to a new historic high.
In addition to excess demand over supply that is fueling the rally, building materials prices continue to rise at a rate well above the consumer price index.
In the next period of time, the Bank of Greece will announce the course of the real estate price index for the fourth quarter of 2023 and overall for the last year. A further uptick should be taken for granted, as all signs point in that direction.
Following the further increase of the general price index, it will come even closer to the historical highs recorded – always based on the Bank of Greece index – in the third quarter of 2008, just before the “collapse” of the real estate market began.
Especially for new build properties, which are experiencing faster price growth, the recovery of historical highs is most likely to be seen in 2024. The limited ability to finance investment in the property market due to the increase in interest rates over the last two years does not seem to hinder – for the time being – the rise in prices.
