No letup in property rate rise
Property values in major cities continue to rise at a robust pace, Corinna Saias, managing director of Premier Realty Greece, stated.
In Athens, house prices increased by 10.3% in the year’s first quarter compared to Q1 2023, though this growth is slower than the 17.39% surge seen the previous year. In Q2 2024, prices rose by 12.4% compared to 2023.
Piraeus recorded the highest increase this quarter, with a 28.9% rise from the previous year. From March 2023 to February 2024, private construction activity across the country increased by 13% in the number of buildings compared to the previous year. Meanwhile, the prices of building materials continue to rise. Despite the rising costs, demand from international buyers remains strong.
Foreign investors are particularly drawn to luxury and higher-cost residences, betting on future capital gains. In 2023, foreign real estate purchases reached 3 billion euros. The real estate sector contributes about 20% to 35% of the country’s total foreign direct investment (FDI) each year.
While prices are expected to increase in the short term, rising inflation, escalating construction costs, and high interest rates are likely to negatively impact investment profit margins in the long term, she said.
