House Prices Surge by 90% in Eight Years

Residential property prices in Attica have experienced a dramatic 90% increase since 2017, when the market began recovering, until the third quarter of this year. Sale rates in the capital have surpassed the previous peak recorded in 2008 by over 5%.

According to data from the Bank of Greece (BoG), property prices are now 5.2% higher than their 2008 levels. Nationally, residential property prices have risen by 71.6% during the same period, leaving them just 1.3% below the 2008 high.

The surge is particularly pronounced in newly built properties (up to five years old), where prices have increased by 77%, surpassing the previous peak by 3.7%. However, older properties (over five years old) have not yet reached 2008 levels, despite a 67.8% rise, with prices still 4.4% lower than the previous high.

In Thessaloniki, prices have surged by 84.6%, though the average selling price remains 1.67% below 2008 levels. In other major cities, the cumulative increase is 51.5%, with prices still lagging 9.15% behind the 2008 peak. This smaller increase is attributed to a more modest decline during the economic crisis in these regions.

Attica stands out for its rapid price escalation, driven by a mix of domestic and foreign demand. This trend mirrors the real estate “boom” of the 2000s but with significant differences. Before the economic crisis, demand was largely domestic, fueled by easy access to bank loans—over 80% of housing purchases were financed through mortgages, often with dire financial consequences.

Today, the situation is markedly different. From 2019 to 2023, a substantial share of demand has come from abroad. Factors such as Greece’s Golden Visa program, the growth of short-term rental markets, and relatively low property prices compared to international markets have played a critical role. This foreign-driven demand has significantly contributed to the “rally” in property values, particularly in Attica.