Bank of Greece reports 7.7% rise in Greek housing prices
Following a period of eight years where Greek housing prices have been falling, improving economic conditions have led to a significant rise in apartment prices for 2019.
Apartment prices in Greece have increased on average by 7.7% in the second quarter of 2019 in comparison to the second quarter of 2018.
In the second quarter of 2019, the year-on-year increase in prices was 7.7% for “new” apartments (up to 5 years old) and 7.6% for “old” apartments (over 5 years old). In 2018, the average annual rates of increase were 1.9% and 1.6% for “new” and “old” apartments, respectively.
In the first quarter of 2019, Greece saw an increase of 5.1% year-on-year for “new” apartments versus 4.9% for “old” apartments.
Urban areas of the country saw an 8% year-on-year increase in the second quarter of 2019. These areas highly benefitted from home-sharing platforms, such as Airbnb, as well as from the growing popularity of the “Golden Visa” programme.
Greek house prices fell 42% between the period of 2008-2017 when Greece suffered its protracted recession. High property taxes imposed to reduce budget deficits, as well as strict bank lending, caused major damage to the Greek market.
Greece has now emerged from its last bailout programme in August and is now relying on markets for its financial needs.
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Photo (c) Kathimerini Greece