The prospects of the real estate market are positive, based on a relevant analysis by Alpha Bank in its weekly bulletin.

According to the bank, the market will be strengthened in the short term through a series of incentives included in the 2023 state budget, such as the provision of subsidies for renovation and energy saving of homes and the low-interest loan program for the purchase of a first home, for young people and young couples up to 39 years old.

According to Alpha Bank, “the real estate market is estimated to be positively affected by the investments that are expected to be implemented within the framework of the National Recovery and Resilience Plan (“Greece 2.0”) and concern the energy upgrade of public and private buildings, as well as investments aimed at diversifying the Greek tourism product through the systematic promotion of thematic and alternative forms of tourism (e.g. mountain, gastronomic, wellness tourism, sea tourism, etc.).

In addition, it is worth noting that the “Greece 2.0” Plan envisages the implementation of reforms to reduce the complexity of procedures, among others, regarding obtaining credit, registering a property and obtaining a construction permit.

On the other hand, a source of uncertainty for the real estate market is the increase in interest rates, in continuation of the contractionary policy followed by the ECB in order to contain inflation in the Eurozone. This development, combined with the rise in the prices of building materials, may slow down the development of the real estate market and construction activity.