Greek real estate market shows visible signs of recovery after a decade of continuous downward trend (of 35% -45% cumulatively in terms of prices). According to the latest available data, as reported by the National Bank of Greece, the prices of all property categories are rising, compared to their previous levels (with house prices showing an annual growth rate of 2.5% in the third quarter of 2018). Equally encouraging is the fact that new housing permits are on the rise (showing a cumulative increase of 15% in the last two years). As the real estate market is crucial for the economy, the new study prepared by the National Bank’s Economic Analysis Division focuses on exploring the strength and potential of the current upward trend.
Investment interest of 40% from abroad
As the critical parameter for the future course of the real estate market is the intensity of investment interest, a field survey of 200 real estate and real estate agencies (which are the direct receivers of investor dispositions) was conducted. The overwhelming majority of the brokerage market (90%) recognizes the significant increase in investment interest. It is noteworthy that investors appear to be divided into two categories: (i) active investors who are ready for direct placements (accounting for approximately 35% of the market); and (ii) cautious investors who, while interested in Greek real estate , maintain a stand-by approach (accounting for about 55% of the market). Overall, 40% of the market indicates that the investment interest comes mainly from abroad.
Penetration of AirBnB
Focusing on the main categories of real estate, it is noted that:
In terms of housing (the largest real estate market, as it covers 79% of the country’s total building stock), the view of the real estate market converges to the prominent importance of AirBnB’s rapid penetration in Greece, with its active investment interest in small residences in Attica covering almost 70% of that market.
As far as tourist properties are concerned, 60% of the market indicates that there is an active interest mainly from foreign investors./IBNA