Over the past 15 years, Greece has remained the most affordable real estate market in Europe, with prices increasing by only 4.2%. In contrast, housing in Spain, Portugal, and Israel has seen significant price hikes, up to 150%.
This slow advancement of the Greek market makes properties in Greece much more accessible.
In Germany, housing prices have increased by 77%, but there is a huge deficit here. Over 300,000 homes should be built annually by 2030 to meet the demand.
How Greece Remained with the Cheapest Houses in Europe
Between 2010 and 2015, the real estate market in Greece suffered massive losses, with housing prices dropping on average by 45%, as shown by eKathimerini.
In major cities such as Athens and Thessaloniki, the decrease exceeded 50%, making the market reach one of the lowest levels in Europe.
This situation was caused by a reduction in demand and the general economic difficulties of the country.
Starting in 2017, the real estate market in Greece began to recover, and prices gradually returned to 2009 levels. However, despite a 56% increase in the last five years, Greece remains one of the most affordable markets in Europe, offering interesting opportunities for investors and foreign buyers.
While data shows a housing price increase of only 4.2% in 15 years, countries like Israel and Portugal have seen increases of up to 150%, with Germany and the United Kingdom seeing price hikes of 77% and 65%, respectively. In Romania, the increase is 30%.
The situation in Greece is similar to that in Spain and Cyprus, where housing prices dropped significantly in the early years of the past decade following similar economic crises. However, in recent years, these markets have started to recover, with Cyprus recording a 25% growth in five years, and Spain 17.26%.
Germany Faces Its Most Severe Housing Crisis
Germany should build 320,000 new apartments each year until 2030 to alleviate the housing shortage, according to a study by the Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), as reported by Reuters.
Authorities granted permits for the construction of only 216,000 apartments in 2024, as the largest economy in Europe is facing its most severe real estate crisis in decades, limiting the development of new projects.
This slow pace, the slowest since 2010, places Germany far behind the self-imposed goal of the federal government to build 400,000 apartments per year, necessary to accommodate a growing population, partly fueled by immigrants from Ukraine and Syria.
The study, conducted by the Federal Institute for Research on Building, Urban Affairs, and Spatial Development (BBSR), was commissioned by the German Ministry of Housing. It highlighted the particularly high need for housing in cities like Berlin, Munich, and Frankfurt.
After years of boom, the German real estate industry, valued at 730 billion euros, stalled in 2022 when the European Central Bank rapidly raised interest rates to combat the most severe inflation in decades.
The industry, operating at full capacity, was not prepared for this shock. Construction projects halted, workers lost their jobs, property sales plummeted, and real estate developers went bankrupt.
D.D.