The Real Estate market in Greece in 2022 was marked by a positive outlook. According to the Bank of Greece, residential property prices in Greek cities increased by 8.35% compared to the third quarter of 2021.
This rapid growth of 3.91% is the first time since the first quarter of 2007. In the third quarter of 2021, residential property prices in Greece increased by 2.73%.
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Growth in residential real estate market in Greece greek property market outlook 2022
The rise in prices in the real estate in Greece is observed mainly in large cities and agglomerations.
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1. Rising prices for residential real estate market in Athens
Real estate market in Athens have risen the most in the last year. The analysis of the National Bank of Greece shows us an annual increase in the price of residential real estate in Athens by 9.76%. In the same previous period, the increase in property prices in the Greek capital was 6.83%. The last quarter of 2021 showed a real estate market growth in Athens of 3% in real terms.
Our experts predict a rise in prices and an increase in the capitalization of real estate in Athens.
Athens is the capital and main economic center of Greece. The real estate market in this region of Greece will grow rapidly.
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This will be facilitated by the reduction or complete abandonment of anti-covid restrictions. A large influx of refugees and migrants is boosting the rental property market in Greece. This leads to an increase in the attractiveness of Greek real estate like a business active.
2. Rising prices in the real estate in Thessaloniki
The increase in prices in the real estate market in Thessaloniki in 2021 amounted to 8.74% (6.8% in real terms). The real estate market in Greece showed the price increase in Thessaloniki In the last quarter of 2021 for 3,45%.
Thessaloniki is the second largest city in Greece. The growth in prices for residential real estate in annual terms is less, but the distribution of this growth is not even throughout the entire annual period. Real estate prices in this region of Greece are subject to the same factors as in Athens.
In other Greek cities, real estate prices rose by 4.05% in absolute value.
The nature of the real estate market in Greece
The urbanization of Greece has led to a large skew in property prices in urban areas compared to rural areas and regions. According to the census, 35% of real estate in Greece in the regions is unoccupied and empty.
Rental real estate in Greece prices 2022
According to the Global Property Guide analytics, the annual Profitability in the central part and regions of Athens is 4.2% for apartments with an area of more than 100 sq. m. This is a fairly moderate figure. This value increases proportionally with a decrease in the area of the apartment.
Profitability from rental property on Crete
Real estate on the island of Crete has approximately similar figures with Athens and have approximately 3%. A smaller apartment have a bigger annual profit and is more liquid.
In general, from 2010 to 2021, the price of rent in Greece fell by 24%.
Foreign investment in the real estate market in Greece
Foreign direct investment in real estate in Greece is between 25% and 35% of the total investment. According to Ernst & Young Investment Report 2021, Greece is one of the most attractive country for private direct investment in real estate.
“Golden Visa” program in Greece
The popularity of private equity investment in Greek real estate can also be linked to the “Golden Visa” program. This program provides for the issuance of a residence permit by the Greek government to foreigners who make private investments of more than 250,000 euros.
Over the entire period of the “Golden Visa” program, 28,411 residence permits have been issued in Greece.
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