Contrary to expectations of a price decline, property values in Greece have remained stable, with some regions even experiencing modest price increases. Potamianos attributes this trend to a persistent supply-demand imbalance, with a significant portion of the market driven by low- to middle-income buyers. Most Greek buyers are seeking properties under 120 square meters, priced between 400,000 and 450,000 euros.

Meanwhile, foreign investors continue to dominate the luxury property market, particularly in holiday destinations. Demand for larger, high-end homes has bolstered investment in areas such as the Saronic Gulf and Evia, as well as the outskirts of Athens, where opportunities remain more accessible. However, central Athens continues to see high square meter prices, ranging from 1,700 to 1,800 euros, even in historically affordable neighborhoods like Patisia and Kypseli.

Renovated properties are now a major focus for buyers, as most prefer move-in-ready homes over the costs and complexities of renovation projects. Potamianos highlights that renovations can increase a property’s value by up to 20%, though rising renovation costs—now exceeding 1,000-1,200 euros per square meter—and a shortage of skilled labor are significant challenges.

Government intervention, such as releasing bank-owned properties into the market, could help address supply issues and stabilize prices. Additionally, initiatives like the “My House II” program aim to stimulate demand for smaller and mid-sized homes, providing further support to the market.

The Greek real estate sector continues to face hurdles related to urban planning, property identification, and legal settlement processes. Potamianos advocates for a unified regulatory body to streamline real estate management across multiple ministries, which could mitigate these challenges.

Decisions from the Council of State (CoE) have also contributed to uneven competition, creating a two-speed market where conditions vary by municipality and construction status. Potamianos warns that these disparities could impact market balance and growth.

Greek buyers primarily fall into two categories: younger buyers (ages 40-45) relying on income and parental financial support, and older buyers (ages 55-60) using savings or inheritance to purchase holiday homes. Notably, around 80% of real estate transactions are now completed with cash, a shift from the pre-crisis period when loans were the primary method of financing property purchases.

As prices remain high in urban centers, investment opportunities are increasingly shifting to suburban and peripheral areas. Potamianos emphasizes that increasing the supply of bank-owned properties, addressing urban planning inefficiencies, and encouraging renovations will be critical to stabilizing the market.

“Maintaining reasonable price levels is essential to ensure transactions remain feasible for both buyers and sellers. Working with professional estate agents and valuers is key to achieving fair and timely outcomes in this evolving market,” Potamianos concluded.

The post Greek Real Estate 2024: Stability Amid Challenges and Investment Opportunities appeared first on Housing TV Africa.