The Greece 3rd housing market new double-digit growth during the third quarter of 2023 has catapulted Greece into the global top 3 of countries with the strongest annual rate of change. Specifically, the annual rate of change in housing prices for the whole of our country was 11.9% in the period July – September 2023, with the cumulative increase since 2017 reaching 57.5%, according to the Bank’s data of Greece.
Based on the apartment price index compiled by the Central Bank for the entire country, the highest value of the index was observed in the year 2008 (101.7) and then followed a steady downward trend, to record the lowest value in 2017 (59).
Since then, the apartment price index has recorded a steady upward trend, reaching 92.9 in Q3 2023, just 8.65% short of its all-time high.
Remarkably, despite the fastest interest rate rise in history, house prices fell only slightly at the start of this year and have continued to rise since then and are now 3.5% above their 2022 peak. Even adjusted for inflation, real house prices are only 2% below their 2022 peak, despite higher interest rates.
The big issue for housing markets in 2024 will remain low liquidity, with sales volume down by as much as ¼ from its recent high. Only a shift to lower interest rates will stimulate sales activity