An increase of 39% has been noted for houses in the Attica during the last four years, specifically from the first quarter of 2018 to the first quarter of this year.
This increase results from the analysis of the housing price index, which is edited by the Bank of Greece. According to the data of this year’s first quarter, the corresponding increase (compared to the first quarter of 2018) nationwide reaches 27.8%. Also, according to the revised figures of the Central Bank of Greece, the price increase in 2021 was finally 7.4% (from 7.1%), compared to an increase of 4.5% in 2020.
However, during this year’s first quarter, the pace of house price growth slowed down slightly, compared to the immediately preceding quarter. In particular, according to the relevant price indices of the Bank of Greece, nationwide prices increased by 8.6% on an annual basis, compared to an increase of 9.1% in the immediately preceding quarter (Q4 2021).
However, as seen, material appreciation continues to push new construction prices up, widening the gap with older properties as well. In particular, during the first quarter of 2022, the prices of newly built houses saw an annual increase of 10.3%, against a 7.4% increase of old houses (over five years old). Accordingly, during the fourth quarter of 2021, newly built properties had increased by 9.8% year-on-year, while the growth of older ones was 8.6%.
In Attica, the increase in housing prices during this year’s first quarter amounted to 9.7% compared to the corresponding period last year, while in Thessaloniki the increase reached 8.3%. In other major cities house prices increased by 8.2% and in the rest of the country the annual increase was 6.4%. In Attica, as a whole in 2021, prices increased by 9.4% based on revised data from the Central Bank, compared to increases of 7.8% in 2020 and 10.6% in 2019. In Thessaloniki, in 2021 prices increased by 7, 2%, while in all the urban areas of the country, in 2021, the average annual increase amounted to 7.8% and to 9.2% during this year’s first quarter.
In its annual report for 2021, the Bank of Greece stated that “the Greek real estate market during 2021 and also in the first quarter of 2022, after many fluctuations, went through a period of positive expectations for the normalization of conditions and further development. In 2021, the construction activity continues to strengthen at national level compared to the corresponding period of 2020, both in terms of the number and in terms of the volume of new building permits (47.6% and 54.1% respectively), while the growth rates in Attica were notably higher (64.1% and 70.5% respectively)”.
However, the fact that the current health crisis continues to partially affect the operation of the market, combined with recent geopolitical developments and the significant turbulence caused in recent months by increased energy costs and price surcharges, create new conditions of uncertainty.
Source: kathimerini.gr
