Greece Real Estate Market: Attica Home Prices Soar 88%

Explore the dramatic rise in Attica home prices, which have surged nearly 88% since 2017, transforming the Greece real estate market.

Greece Real Estate Market: Attica Prices Soar 88%

In a remarkable twist of the real estate saga, the average cost of residences in Attica has skyrocketed by a staggering 88% since 2017, according to data from the Bank of Greece (BoG). This meteoric rise in house sale prices, which has unfolded since the onset of the market recovery in 2017 and continued through the second quarter of this year, underscores the frenetic pace at which property values have rebounded. The surge is predominantly driven by foreign buyers, with domestic demand also playing a role, leading to prices that have now eclipsed the previous peak recorded in 2008 by a modest 4%.

On a national scale, home sale prices have experienced a robust increase of 69.2% following the second quarter, although they remain 2.4% shy of the heights reached in 2008. This trend illustrates a near-complete recovery of the Greece real estate market, yet it simultaneously highlights the mounting challenges in addressing the housing crisis, particularly acute in the bustling urban centers of Athens and Thessaloniki.

The second-quarter data released by the central bank reveals a year-on-year price increase of 9.2% nationwide, a slight deceleration from the 10.6% rise observed in the first quarter and the impressive 13.8% growth recorded in 2023. This trend indicates that while the rate of increase is beginning to taper, it remains significantly elevated, outpacing both inflation and the growth rate of household incomes. In Attica, the second-quarter growth was 9.1%, a slight dip from 9.5% in the first quarter of 2024, while Thessaloniki saw prices soar by 12.1% in Q2, down from 12.8% in the first quarter and 16.5% for the year.

The price dynamics are further illustrated by the varied increases across different districts of the capital, with some areas witnessing even more dramatic hikes. For instance, in Koukaki, the average sales price has leaped from €1,250 per square meter in 2017 to approximately €2,600 per square meter today, marking a jaw-dropping 108% increase. Ambelokipi has outdone itself with an even steeper rise of 136%, climbing from around €800 per square meter in 2017 to €1,900 per square meter now. Meanwhile, in Halandri, the average sales price has surged to €2,700 per square meter, a significant jump from the €1,100 per square meter recorded in 2017, representing a staggering 145% increase.

As the Greece real estate market continues to evolve, the implications for affordability and housing accessibility remain pressing concerns, particularly in the face of such rapid price escalations.