Home supply squeeze showing
The prices of second-hand homes have been rising at a faster pace than those of newly built properties over the last six months.
This is a trend which is confirmed both by Bank of Greece data and by reports from real estate agencies which monitor the course of the housing market. Sale prices of newly built homes may start from 3,500 euros/sq.m. However, in many cases and regardless of region, but especially in high-demand areas such as the northern and southern suburbs, the prices of second-hand homes have begun to converge with those of new-builds.
This is a phenomenon that the Bank of Greece has also begun to record. In its recent analysis on the real estate market, in the context of the monetary policy report, the BoG noted that “in the first few months of 2023, the Greek real estate market continued to record high rates of price growth, as a result of strong demand and a limited supply of modern real estate. In addition, the low supply of modern real estate is gradually leading to the diffusion of price increases to properties of lower technical specifications.”
BoG price indices showed the annual increase in the prices of old apartments in this year’s first quarter was 15.6%, while the corresponding rise for newly built homes was 12.8%.
