Positive indicators suggest that new mortgage disbursements are projected to increase by approximately 10% in 2026—matching the expected growth in 2025—bringing total volumes close to €3.1 billion, compared with €2.6 billion in 2025.
In 2024, real estate transactions reached €10 billion; however, mortgage lending accounted for only €1.8 billion of this total. Similarly, in 2025, with transaction volumes estimated at €12 billion, mortgage lending is expected to rise to €2.6 billion. These figures underscore the fact that the majority of property acquisitions are financed without recourse to bank lending.
The limited penetration of mortgage lending in Greece can be attributed to several factors. Greek banks pursue a conservative lending strategy, characterized by stringent credit assessment criteria and relatively low loan-to-value limits. As a result, the stock of outstanding mortgage debt remains significantly below the European average. The Bank of Greece has noted that demand for mortgage loans remains weak and that banks continue to apply cautious lending practices, despite signs of macroeconomic stabilization. While this prudence strengthens bank balance sheets, it simultaneously constrains access to housing finance for a large segment of households.
By contrast, in many European countries mortgage credit plays a substantially more prominent role in housing finance. Countries such as France, the Netherlands, Spain, and Italy approved tens of billions of euros in new mortgage loans in 2023, reflecting a highly active financial sector that strongly supports homeownership and residential investment.
These differences also reflect deeper structural characteristics of housing markets. In Greece, homeownership continues to rely heavily on personal savings or family support, whereas in most European countries residential property purchases are largely financed through bank lending, which represents a significant share of total market value. In the Netherlands, for example, approximately 58% of homeowners are servicing a mortgage loan, illustrating the high penetration of mortgage credit.
Greece ranks last in the European Union in terms of the proportion of households with an active mortgage loan. Despite the recent acceleration in new mortgage lending, continued bank caution and tight credit conditions mean that bank financing still accounts for a relatively small share of overall real estate transactions compared with other European countries.
A sustained increase in bank-financed housing could help align Greece more closely with prevailing European practices and materially improve access to homeownership for a broader range of households.
