HOMEOWNERSHIP IN GREECE IS AT A HISTORIC LOW – WHY GREEK WOMEN ARE NOT BUYING PROPERTIES
Home ownership and how Greeks see the shift to renting was the topic of the discussion held as part of the 25th Prodexpo, at the Athens Concert Hall, it is emphasized in a related announcement published by APE-MPE.
Vassiliki Vlachostergiou, Deputy Head of Real Estate Analysis Section at the Bank of Greece, stated that the percentage of owner-occupied housing has decreased significantly and is now at 69.6% in our country in general based on Eurostat data, while for Athens this percentage has dropped to 64%. The main issues leading to this decline is the fact that residential property values have been increasing at double-digit rates for the past two years, while from 2017, which was the lowest point for property values to Q2 2024, the increase in value of real estate in Athens amounts to 90%. Compared to the best year in 2008, the increase is 4%. In addition, the inventory of properties for sale is qualitatively inferior as it is “aged” since it is more than 40 years old.
Another issue is that values have increased greatly with the increase moving to 100% in general and 70% in Central Athens. Also problematic is the fact that disposable income has decreased by 20% compared to 2008, while new building permits are no longer issued, resulting in a deficit of new properties. Mrs. Vlachostergiou emphasized that the building permits issued from 2011 to 2024 are cumulatively the same as those issued in 2005. Regarding the attitude towards home ownership, she added that this cannot be changed and renting is a temporary solution, while for Athens he said that it now “accommodates” half the population in Greece, as there is a significant burden from the rise of tourism.
Panos Lolonis, Head of the Geospatial Information Department, Hellenic Land Registry stated that sales have increased compared to other transactions and characterized 2005 as the peak of the market. For owner-occupation, he said that it is not at the same rates as in the past, as owning a property is no longer profitable, while it is becoming burdensome due to ENFIA, lack of financing, maintenance and the difficulty of the transfer process.
In addition, the mobility of young people, mainly abroad, has increased, as they no longer invest in fixed assets such as a residential property. However, in addition to the above problems, Mr. Lolonis commented that there are no properties available for purchase and for this reason there is a large shift towards renting. Kosmas Theodoridis, VP of the Real Estate Association of Athens – President of PAC / CEPI, emphasized that the housing problem exists throughout the Western world and Europe, while it is specialized in our country. On global data he said building is a “very expensive sport” and there is a shortage of plots.
In our country, according to Mr. Theodoridis, the problem lies in the fact that the generation of the Polytechnic has borrowed to a great extent and has burdened the next generations in terms of home ownership. In addition, there are approximately 2 million vacant homes, but these are located in the countryside and have been abandoned. The problem lies in the fact that the population is concentrated in Athens and that young people are leaving abroad. For the province, he emphasized that rents remain low, but there is no desire for accommodation as there is no developed transport network, for example trains. Regarding what needs to be done, he said that the state must sit at the same table with the people of the market and discuss so that the problems can always be solved with the available funds.
Nikos Tsatsis, Chief Development Officer, Plasis Real Estate + Development, stated that there are several problems in terms of owner-occupied housing. To begin with, real estate prices are rising without a corresponding increase in wages, while loans are not enough to buy modern houses. He added that in the past buying a property was linked to help from family. This is no longer the case as family cash reserves have been reduced and family properties have also been seized due to the loans. On the other hand, young people have gone abroad, where renting is very common, while many prefer to rent a property with benefits rather than buy something old.
Marie Delli, Partner, LCI Law pointed out that there are no large complexes that provide services and belong to an owner who will manage them. Instead, the market has focused on offices, hotels and logistics with significant gaps in housing. In addition, it was reported that there are legal issues that pose obstacles. One of them is the fact that the building factor is inactive, as the land bank has not yet been put into operation. Also, simplification is needed in permitting procedures such as those for demolition, restoration of listed buildings, renovation, and changes in land use.
In closing, he said that there should be a public debate on the law of residential tenancy and the protection of the minimum tenancy set by law should be abolished and every contract should be the result of negotiation between landlord and tenant.