In the wake of Greece's prolonged financial turmoil, a significant shift has occurred in the country's housing landscape, marked by a notable increase in institutional and foreign ownership of residential properties.
According to reports from the Hellenic Statistical Authority (ELSTAT) and Eurostat, Greece's homeownership rate saw a substantial drop from 84.6% in 2005 to 73.3% in 2021. This updated percentage still slightly exceeds the European Union's average homeownership rate of 70%.
Notably, in major urban centres like Athens and Thessaloniki, homeownership rates have plummeted even further, hovering around 60-65%.
Lefteris Potamianos, president of the Athens-Attica Realtors Association, attributes this shift to various factors stemming from the economic crisis. "During the economic crisis, many property owners were compelled to sell their homes to settle debts and other obligations," Potamianos stated. "Some turned to renting, others returned to family homes, and some, particularly younger individuals, emigrated."
The impact of the crisis on household finances has been severe, with Eurostat data indicating that as early as 2010, nearly one-third of Greeks struggled to meet their financial obligations consistently. By 2015, almost half of Greeks lived in households burdened with outstanding debts.
The shift towards rental arrangements or property relinquishment has led to a concentration of properties in the hands of institutional investors, banks, and funds. Potamianos estimates that approximately 300,000 homes are now under the control of these entities, further contributing to the decline in homeownership rates.
This transformation in property ownership has reshaped the cultural perspective towards housing in Greece. "Acquiring a home is no longer the sole option," Potamianos noted. Many young individuals now prefer renting, influenced by the challenges faced by previous generations and the inability of families to financially assist them in purchasing homes.
Moreover, the economic downturn has exacerbated living conditions for many Greeks, with overcrowding becoming a significant issue. Eurostat data indicates that overcrowding affects a substantial portion of the population (28.5% in 2021), surpassing the EU average of 19.1%. Similarly, Greece lags behind in terms of rooms per person, reflecting the level of comfort in households.
Despite these challenges, efforts are underway to address the issue of affordable housing in Greece. However, with housing-related expenses consuming a significant portion of disposable income, the road to recovery remains fraught with obstacles.
(Source: Kathimerini, ELSTAT, Eurostat)
