Mortgages jump 30% this year
New mortgages issued in 2022 were some 30% higher than in 2021, reaching 1.2 billion euros, according to an analysis by Alpha Bank’s Economic Research Department.
The recovery of housing credit is considered satisfactory and according to the estimates of competent officials, it will continue in 2023 at about the same levels.
“The outlook for the real estate market remains positive, as it is strengthened in the short term by the incentives included in the 2023 budget, such as the provision of subsidies for renovation and energy conservation of homes and the low-interest loan program for young people up to the age of 39 buying their first residence,” noted the analysis.
According to banks’ estimates, damaging factors that affect housing demand and prevent a more robust recovery are the rising interest rates and the persistently high inflation that is reducing disposable income, combined with the rise in real estate prices, which grew by 10.4% in the first nine months of 2022.
In an attempt to support market demand, Eurobank proceeded on Tuesday with a new reduction by 0.60% of the spread it applies to floating interest rates.
