After nine years of falling house prices, the Greek housing market is now growing strongly again amidst improving economic conditions and market expansionary measures.
In Greece’s urban areas, house prices rose by 9.32% during the year to Q3 2019, far higher than the previous year’s 2.35% growth and the highest annual increase in house prices since Q4 2006, according to the Bank of Greece. When adjusted for inflation, house prices increased by 9.39%. Quarter-on-quarter, house prices in urban areas were up 2.23% in Q3 2019 (3.46% in real terms).
Demand is now surging, with residential property transfers in Athens rising by double-digit figures in the past four years. Construction permits soared 24.5% to 11,744 units during the first nine months of 2019, following annual rises of 10.1% in 2018 and 9% in 2017, according to the Hellenic Statistical Authority, though the total remains far below the 70,000 to 80,000 permits issued annually from 2004 to 2007.
Residential construction in Greece is rising again, after almost a decade of declining activity. In 2018, building permits rose by 10.1% y-o-y to 15,180 units, following 9% annual growth in 2017 and y-o-y declines of 5.3% in 2016, 0.6% in 2015, 18.2% in 2014, and 28.1% in 2013. Despite this, it remains far lower than the 70,000 to 80,000 permits issued annually from in 2004 to 2007.
The recovery extended last year. During the first nine months of 2019 (based on figures from Hellenic Statistical Authority):
Number of permits: 11,744 units, up 24.5% from a year earlier
Floor space: 2.5 million sq. m., up 6.6% from a year earlier
Volume: 11.15 million cu. m., up 9.7% from a year ago
More info https://www.globalpropertyguide.com/Europe/Greece/Price-History