The Greek real estate market appears to have entered “bubble” territory, following its rally of six years that started in 2017, as the International Monetary Fund (IMF) observed in its Article IV Consultation report on Greece.
In the report, the IMF is also raising some concerns about the Greek banking system, urging Greek authorities to take measures, although it acknowledges the sector’s resilience.
As the report says regarding real estate: “Residential real estate prices have increased significantly across the board of indicators since its trough in 2017, exceeding 50 percent in nominal terms and 35 percent in real terms and not yet visibly decelerating, supported by strong employment and real disposable income growth.”
It is worth noting that, according to the IMF, demand in real estate has also come from non-residents who significantly increased their investments in the real estate market, leveraging the “Golden Visa” program. This program has added to structural issues indicating Greece as one of the countries with the lowest number of rooms per person.
As the IMF analysis shows, current property values pose a risk factor for the Greek banking system. Although systemic risk is relatively limited, according to the IMF, as there is low private sector leverage, it has increased since last year, and the banking sector faces significant challenges in its future.
Source: tovima.com
Latest News
Intrum’s 2024 Report Unveils Greek Businesses Embrace Digitalization for Growth
Looking ahead, over 40% of businesses prioritize development for 2024, with 65% recognizing the potential of digital business models as sustainable investments
IOBE: Mild Drop in April Business Confidence Index (BCI) in Greece
The positive balance of expectations for employment witnessed a marginal decline, while the index for production forecasts also recorded a mild drop
Greek PM Mitsotakis Calls on EU to Intervene Over Multinationals’ Pricing Policy
Speaking about price fairness, the Prime Minister emphasized, "Europe should also mean similar or uniform prices for the products sold by our multinational corporations.
Greenhouse Gas Emissions: 4% Decrease in EU, 0.3% Rise in Greece in Q4 2023
The EU's GDP remained stable with a marginal 0.2% increase in fourth quarter of 2023
HEREMA CEO: High Expectations from Natgas Exploration Off Crete
3D seismic surveys were conducted in the two offshore blocks west and southwest of Crete by a consortium comprised of ExxonMobil and HelleniQ Energy
EC Spring Forecast: Greek GDP at 2.2 in 2024, 2.3% in 2025
Besides Greek GDP inflation is expected to drop by a substantial 2.4% in 2024, settling at 2.8% from 4.2% in 2023 with 2025 recording a further decline to 2.1%
EBRD Raises Outlook for Greek GDP to 2.3% in 2024, 2.6% in 2025
Key downside risks remain, associated with possible delays in deploying Recovery and Resilience Facility (RRF) funds and weaknesses in key export markets and tourism source countries
Real Estate Insights: Athens’ Top Areas with the Highest Yields
In the first quarter of 2024, Korydallos in the Piraeus region and the burgeoning Attiki Square retain their top spots with impressive yields of 6.3%
ELSTAT: Inflation at 3.1% in April
Olive oil (63.7%), fruit (11.6%), fish (10.6%), and mineral water (12.5%) registered the highest increases annually
Greek Sunlight CEO Joins Industry Titans at Choose France Summit
At the heart of the "Choose France Summit" was the discussion surrounding the production of lead-acid and lithium-ion batteries, crucial for the green transition and storage of renewable energy.