Greek Real Estate: From Home to Asset – A Paradigm Shift in the Market

The Greek real estate market is undergoing a transformation, shifting its focus from traditional home ownership to a lucrative investment opportunity. This is confirmed by the latest data from a nationwide survey, which paints an interesting picture of the changing landscape.

The survey found that 18% of respondents plan to purchase a property in the next two years. Notably, exactly half of them (9%) are driven solely by investment objectives. This indicates a significant shift in the perception of real estate: it is increasingly seen not just as a place to live, but as a way to diversify a portfolio and generate passive income. The remaining 9% plan to use the purchased property both for their own residence and for subsequent rental, thus expecting to partially offset the cost of the mortgage.

What are the factors pushing for this change in priorities? The survey revealed a number of key reasons. The average monthly mortgage payment in Greece is €488, which is only slightly higher than the average rent of €440. It would seem that rent is more expensive than a mortgage. However, high initial costs for purchasing a home – down payment, various fees and taxes – make purchasing a property unaffordable for a significant part of the population.

The majority of renters (70%) pay no more than 600 euros per month for housing, of which 40% spend between 400 and 600 euros. This situation, exacerbated by inflation and rising living costs, makes renting an increasingly less attractive option for long-term living, especially when compared to the possibility of gradually paying off a mortgage and, in the long term, acquiring your own home.

The survey also identified the reasons for the rise in rental rates: inflation, the general rise in the cost of living, the spread of short-term rentals (e.g. via Airbnb), a shortage of affordable housing, insufficient government regulation of the market, high taxes and low incomes. The growing demand from foreign investors should not be discounted, which is further fueling prices.

The overwhelming majority of respondents (84%) consider current rental rates to be excessively high compared to income levels. However, the question of banning short-term rentals caused a mixed reaction: 22% support it, 35% are against it, and 36% are undecided.

In conclusion, the Greek real estate market is showing a clear trend towards transforming from a housing market into an investment market. High rental prices, rising inflation and instability in the housing market are pushing more and more people to consider real estate as a reliable and potentially profitable asset.

However, it is necessary to consider the risks associated with investing in real estate before making a final decision. Further developments in the situation will depend on government policy, macroeconomic factors and changes in the international market.