The demand for real estate in Greece remains strong, maintaining high price levels for another year. Lefteris Potamianos, CEO of Potamianos Real Estate Group, emphasizes that the current market is shaped by a variety of factors that influence both buyers' decisions and industry professionals’ strategies.
Despite initial predictions of price declines, property values in Greece have held steady and are expected to maintain their stability, with some areas still experiencing growth—though at a slower pace. The main driver of this trend is the persistent imbalance between supply and demand. Potamianos highlights the increasing interest in properties for individuals with small to medium incomes, a key demographic in the Greek market.
Key Market Trends
Greek buyers are predominantly looking for properties up to 120 square meters, with a price range of €400,000–€450,000. On the other hand, foreign investors tend to favor luxury vacation homes with higher prices and larger sizes. This foreign demand is further strengthening the market, particularly in areas surrounding Athens, such as the Saronic Gulf and Evia, where many transactions involve holiday homes. Opportunities in Athens, however, are now limited. According to Potamianos, the cost per square meter in the city ranges from €1,700 to €1,800, even in traditionally more affordable areas like Patissia and Kypseli. Consequently, opportunities for investment are now shifting to the regions outside Athens.
Renovation: A Key Value-Added Factor
The condition and quality of a property have become critical factors in determining its value. Renovated properties are in high demand, as most buyers are reluctant to purchase older properties due to the costs and complexities of renovation. "Renovation can increase a property’s value by up to 20%, while the cost now exceeds €1,000–€1,200 per square meter," Potamianos notes. However, the shortage of skilled labor for renovation projects—due to its involvement in large-scale developments—combined with the lengthy process, discourages buyers from opting for properties in poor condition.
Government intervention and the management of bank-owned properties could provide significant relief to the market. "The release of properties owned by banks could enhance supply and lead to price stabilization," says Potamianos, referring to properties currently undergoing legal settlement before being introduced to the market. He emphasizes that these properties are different from those sold at auction. Programs like "Spiti Mou II" are expected to further boost demand, especially for smaller and mid-range homes.
Urban Planning Challenges and Legal Obstacles
The Greek real estate market continues to face significant challenges related to urban planning regulations, the electronic identity of properties, and legal settlement procedures. Potamianos suggests that the creation of a unified agency to manage real estate, coordinating efforts across multiple ministries, is essential to address these challenges.
One troubling trend is the creation of a two-speed market, driven by recent decisions from the Council of State (CoS). These decisions, expected to provide clarity in the coming days, have led to disparities between municipalities and construction statuses, creating an uneven competitive landscape within the market.
Buyer Demographics and Financing Trends
Greek buyers can generally be divided into two main categories:
Younger buyers, aged 40–45, who rely primarily on their own income and financial support from their parents.
Older buyers, aged 55–60, who use inheritance funds or savings to purchase mainly vacation homes.
An interesting feature of the current market is that around 80% of transactions are conducted in cash, a shift from the pre-crisis period when loans were the dominant form of financing. This cash-based approach reflects the current dynamics of the market, which remains robust despite high prices in urban areas.
Increasing supply through the release of bank-owned properties, resolving urban planning issues, and providing incentives for renovation projects could contribute to stabilizing the market. Potamianos concludes: "Prices must remain at reasonable levels to ensure that transactions are achievable for all. Collaboration with real estate agents and appraisers is crucial, as industry professionals can help both buyers and sellers reach fair and swift transactions."
