Greek Housing Market Sees Sharp Price Increase, Growth Slowing

Greek Housing Market Sees Sharp Price Increase, Growth Slowing

kathimerini.gr

Greek Housing Market Sees Sharp Price Increase, Growth Slowing

From 2017 to Q3 2024, Attica's housing sale prices increased by 90%, exceeding 2008 levels by 5.2%, while nationwide prices rose 71.6%, driven by foreign investment and reduced reliance on bank loans, although growth is slowing.

Read original article in Greek
Greek
Greece
EconomyOtherInvestmentHousing PricesGolden VisaGreek Real EstateAttica
Bank Of Greece
How does the current housing market boom differ from the one experienced in the 2000s, and what are the underlying causes of these differences?
This surge is fueled by both domestic and foreign demand, particularly since 2019, driven by the Golden Visa program and short-term rentals. Unlike the 2000s boom reliant on bank loans (over 80% of transactions), today's market sees 80% of transactions funded without bank loans, reflecting a shift in purchasing power.
What are the key factors driving the significant increase in housing prices in Greece, particularly in Attica, and what are the immediate consequences?
From 2017 to the third quarter of 2024, Attica saw a 90% surge in housing sale prices, exceeding 2008's peak by 5.2%. Nationwide, prices rose 71.6% during the same period, nearing 2008 levels. New constructions (up to five years old) increased by 77%, surpassing the previous high.
What are the potential future implications of the current trend in housing prices for the Greek economy, and what measures might be necessary to address any potential challenges?
The slowing growth rate (7.8% nationwide in Q3 2024, down from 12.7% in Q3 2023) suggests a potential market correction. The differing recovery patterns between Attica and other regions highlight the role of foreign investment and the 'Golden Visa' program in shaping price dynamics. Continued monitoring is crucial to understanding the long-term sustainability of this trend.

Cognitive Concepts

3/5

Framing Bias

The article frames the price increases predominantly as positive, highlighting the recovery from the economic crisis and the similarity to the boom of the 2000s. The slowing growth is mentioned but presented as a secondary point.

1/5

Language Bias

The language used is largely neutral and descriptive, using data and statistics to support claims. However, phrases like "catastrophic consequences" when referring to the previous boom could be considered slightly loaded.

3/5

Bias by Omission

The analysis focuses primarily on price increases and their causes, neglecting potential negative impacts of this rapid increase on affordability and accessibility for certain demographics. It also omits discussion of government policies or regulations that may be influencing the market.

2/5

False Dichotomy

The article presents a somewhat simplistic comparison between the current market driven by foreign investment and the previous boom fueled by domestic loans, neglecting the potential for a complex interplay of factors.

Sustainable Development Goals

Reduced Inequality Negative
Direct Relevance

The article highlights a 90% increase in housing prices in Attica since 2017, widening the gap between the wealthy who can afford these prices and those who cannot. This surge, fueled by both domestic and international demand, exacerbates existing inequalities in access to housing and contributes to a potential housing crisis for lower-income populations. The fact that 80% of current transactions are not bank-financed suggests that increased house prices are primarily benefiting those already possessing significant capital, furthering the inequality.