Greek Housing Market Faces Price Decline Amid Shifting Trends

Real estate experts are anticipating a potential downturn in housing prices in the coming months, contingent upon the stability of the current economic climate. Key factors driving this projected development include a gradual decrease in foreign direct investment in the housing market, forecasted to begin in the latter half of 2024, and tighter access to bank loans for many prospective domestic buyers.

Analysts point out that the anticipated decline in demand is not necessarily due to waning interest in property ownership, particularly among Greek nationals, but rather stems from soaring prices that have rendered many properties financially inaccessible. The market has witnessed successive multi-million-euro investments in real estate over recent months, with new residential and tourist developments cropping up from the northern suburbs to Sounio and along the Athens Riviera.

The focus of both supply and demand appears to be on modern luxury homes, drawing significant interest from foreign investors. However, there is also ongoing construction catering to middle-income brackets, according to industry insiders. In Ellinikon, the largest urban redevelopment project in Greece and Europe, over 1,100 apartments and houses are currently under construction as part of the "Little Athens" development, with 500 units already sold.

The Ellinikon project is just one example of the burgeoning real estate activity in the region. Additionally, new residential buildings are set to transform the skyline of the area, with a skyscraper expected to reach 100 metres in height by the year's end. Further bolstering the sector, major investments such as Apollo Hills, a €200 million project in Voula, have been announced, attracting significant interest from prospective buyers.

Another notable development is Project VORIA, a €250 million investment aimed at revitalising the northern suburbs of Athens. Foreign investors, as well as Greek expatriates, are driving these ventures, hailing from European countries such as Germany, Switzerland, and England, as well as from America and Australia.

(Source: Naftemporiki)