Real Estate: Why the rise in housing market prices will continue - Experts explain on Newsbomb.gr

In recent months, Greece has seen a steady increase in real estate prices. This trend is particularly evident in popular urban areas such as Athens and Thessaloniki. A key driving force behind this growth is the heightened demand, fueled by various factors including increased investment interest, an improving economic situation, and the development of infrastructure and services in different regions.

Experts, speaking with the resource Newsbomb.gr, provide explanations as to why housing prices continue to remain at record levels. Stratos Paradias, president of POMIDA and UIPI, emphasizes: "The cost of real estate is rising at an incredible pace, and prices in the housing market will continue to increase." He describes the situation in the real estate market in Greece as a result of multiple factors, highlighting that this phenomenon is characteristic not only of the country but also of many others.

“The increase in real estate prices is a process influenced by a variety of factors, and it is observed not only in Greece,” he says. A significant factor is the increased demand for housing, which cannot be met due to insufficient supply and skyrocketing construction costs for new and existing housing renovations. He also adds that the rise in housing prices will be emphasized in the near future, especially with the introduction of the new EU directive on the energy performance of buildings (EPBD), which will require owners of old buildings to modernize them. If this does not happen, such properties may disappear from the market – they will be difficult to sell or rent without significant investments from new buyers. According to him, this will lead to a decrease in housing supply in the market.

Paradias further notes: "There is currently significant demand for housing, but the supply does not meet this demand. Prices are rising astonishingly quickly, and there is a shortage of construction companies capable of carrying out primary construction work, renovations, and upgrades." He also points out the tax burdens that contribute to the rising costs.

Eleftherios Potamianos, president of the Attica Realtors Association, points to the ongoing rise in real estate prices: "Housing prices in Greece have reached record levels, especially in major cities like Athens and Thessaloniki.

Over the past five years, prices have increased on average by8-10%annually. In2023In the year, according to the Bank of Greece, this growth amounted to12%For example, if in2019In the year, the average cost of an old apartment in the center of Athens was1000 euros, then in2024In the year, it reached1500 euros.

According to a recent study by RE/MAX Europe, which covers 22 countries in the European Union and surveys 22,000 consumers, the increasing interest from buyers confirms the rise in real estate prices. It is interesting to note that the RE/MAX franchise network is one of the largest in the real estate sector, with over 30,000 professional consultants and 2,400 offices in 40 countries.

The study also reveals that those who struggle to find affordable housing are turning to new solutions, such as co-living, and prefer areas with humane urban planning initiatives.

Key findings of the study

• Every fifth European is considering moving due to financial difficulties.
• Three out of ten respondents have concerns about future relocations, fearing they won't find housing that fits their financial capabilities.
• 65% of survey participants express their willingness to consider joint ownership of housing with friends, colleagues, or even strangers.
• 24.8% of consumers are attracted to the idea of shared ownership, which allows them to share expenses.
• 24.5% of respondents in Europe are interested in the possibility of purchasing a second home.
• More than half of Europeans can envision living together in a house with personal space and shared access to common amenities, provided there are sufficiently good facilities, such as shared office or entertainment spaces.
• 21.2% of respondents view cohabitation as a way to combat loneliness.

Moreover, the study shows that interest in cohabitation is higher among young people, but there is also a growing interest in this idea among older individuals. Almost half of the respondents over...35 years oldThey are considering the possibility of cohabitation. Among the retirees who were surveyed about the possibility of moving and living together, four out of ten expressed genuine interest, as friendly relationships are becoming an important factor.

As for the concept15-minute cityAbout a third of Europeans are familiar with this concept, which suggests that all essential services are within reach.15 minuteswalking or cycling from the residents' housing. About55%they perceive the benefits of reducing travel time, and44.8%% highlight the environmental benefits of creating such cities, as it will reduce the need for long commutes. People are also interested in quick access to green spaces, especially after the pandemic.

From September2022by July2023In the years when the state housing program software was launched, there was a sharp decrease in the real estate that met the program's criteria. For example, the availability of properties with an area of75-120square meters located on the first floor and costing up to150,000 euros, decreased by8.42%.

According to the E-Real Estates study, the most significant changes in Attica were observed in the southern areas, where accessibility decreased from5.03%to1.53%, and in the western regions with2 out of 10There are properties for sale. In Piraeus, there are areas with zero availability.

The center of Athens has also not escaped this trend — a significant decline has been recorded in areas such as Kipseli, Petralona, and Exarchia, where the level of affordability has sharply decreased.

Also read about the consequences of the introduction.Golden visaOn the real estate market, as well as how the rise in rental prices has led to a fascination with digital solutions and new approaches to home buying.