10% increase in real estate prices in the first half of 2022

of Eleni Botas

The Greek real estate market is expected to follow an upward trend in the first half of 2022, with prices rising by up to 10% as shown by the research of Cerved Property Services (CPS).

According to the survey, which was based on the use of a questionnaire on more than 200 domestic and foreign real estate agents and certified appraisers operating throughout Greece and forming the network of CPS partners, 2021 was a strong year for the Greek housing market and the first half of 2022 is predicted to be even stronger.

According to 61% of the network of CPS partners, the market will follow an upward trend. As shown in Chart 1, 37% predict that the market will remain stable, while only 2% expect contraction.

This may be related to the improvement of the general economic climate and the increase of the disposable incomes in combination with the lower mortgage interest rates, the zero VAT for the new constructions and other incentives to support the market.

There are also different trends for each subcategory of real estate. More specifically, apartments and newly built houses will attract increased buying interest according to about 60% of respondents, with these percentages being even higher in large cities.

A more stable situation is expected for detached houses, old properties and plots. Tourist properties will attract the same levels of interest as in 2021 according to 48% of respondents but with mixed results depending on the location (much higher for the islands and lower for larger cities such as Athens and Thessaloniki as short-term leases do not have fully recovered to 2019 levels).

A very important indicator that reflects the increased demand and interest as well as the general course of the market, are house prices. Specifically, 54% of the CPS partner network expects an increase in residential sales prices, while in some areas increases of more than 10% are expected compared to 2021.

43% of respondents predict that the selling prices of residential properties will remain the same and only 3% of participants expect that they will decrease.

Similar trends are found in house rental prices. According to 50% of CPS partners, rents will remain stable in the first half of 2022, while 48% of them predict increases.

Finally, another parameter that shows the current market dynamics is the short absorption time. According to 87% of respondents the available properties are sold in less than 12 months. 13% of real estate takes more than 12 months to sell compared to 27% last year.

Therefore, the second year of the pandemic was not an obstacle to the upward trend of the real estate market. This rise, according to the CPS network of professionals, is expected to continue in the first half of 2022. However, certain subcategories and regions are expected to follow different trends.