Real Estate Market in Attica Continues to Rise
The trajectory of housing prices in Attica is expected to remain steadily upward throughout the second half of the year, as several factors are predicted to work in favor of this trend. One of the main factors is the anticipation created among buyers and sellers by the second phase of the “My Home” program, which provides interest rate subsidies for home purchases. With the doubling of available funds to 2 billion euros, the program is expected to have a significant impact on the real estate market.
The Impact of Increased Demand on Real Estate Prices
As observed during the first phase of the program, there was a significant unsatisfied demand for housing, coupled with consistently low supply of homes for sale. This is likely to keep prices at a high level, possibly even higher than they are today.
Expanding Buyer Demographics
Industry experts explain that expanding the buyer demographic, by including people in the age group of 40 to 50 years, compared to the limit of 39 years in the first phase of the program, will act as a catalyst for further increasing buyer interest.
Expanding the Real Estate Market in Attica
There is a growing trend of buyers with higher purchasing power seeking properties in more expensive areas or moving into homes with higher specifications. This means that the demand for properties is expanding almost throughout Attica, without the restrictions of the initial program.
Furthermore, if there are no restrictions on eligible properties, the benefit will be for the entire market and not just for specific areas. This will have a double benefit, as on one hand it will increase the demand for properties and on the other hand it will promote growth in various regions of Attica.
Restrictions on Real Estate Purchases
Across all regions, demand for real estate remains consistent, with each area having its own appeal. However, there is an effort to limit speculation by certain sellers to keep the market stable.
It is important to note that in the first phase of the program, participants had to choose properties built no later than 2007, making them at least 15 years old, with a maximum price of 200,000 euros and a minimum size of 150 sqm. This led to a significant decrease in available properties for purchase, thereby restricting the potential stock of homes.
Real Estate Market Update
The constant low supply of residential properties for sale is keeping prices at a high level. This is exacerbated by the limited time frame given to secure a property, leading to a further restriction on the pool of available options. It is worth noting that the new legislation now requires the issuance of an electronic building identity in order to transfer a property.
Impact on Property Prices
Properties valued at 60,000-80,000 euros are now being sold for half the price, at 120,000-150,000 euros, due to the lack of supply and high demand. This trend is contributing to the overall stability of the real estate market.
The Pitfalls of Interest-Free Loans in Real Estate
Many homeowners in Greece were lured by the promise of interest-free loans for purchasing property. However, what seemed like a great deal at first, turned out to be a financial trap for many. The extreme distortion in the terms of these loans ultimately resulted in the beneficiaries losing out on the expected benefits.
Due to the complex terms and conditions, the amount paid by the borrowers ended up being equivalent to what they would have paid if they had taken a regular housing loan with all the corresponding interest rates included. This deception led to the cancellation of the supposed benefits of securing an “interest-free” loan.
To prevent similar issues in the future, stakeholders in the real estate market are urging for restrictions to be lifted on eligible properties. This would ensure transparency and fairness in loan agreements, protecting borrowers from falling into deceptive schemes that end up costing them more than anticipated.
Rising Property Prices
Despite these challenges, the real estate market in Greece continues to see an upward trend in property prices. This steady increase in the cost of housing has become a concern for both buyers and sellers, as it raises questions about affordability and market stability.
Buyers are faced with the dilemma of securing financing for their dream homes, while sellers navigate the competitive market to maximize their profits. As property prices climb, it becomes essential for all parties involved to stay informed and cautious in their real estate transactions to avoid any potential pitfalls.
ρειά των κατοικιών έχει αυξηθεί σημαντικά τα τελευταία χρόνια, ενώ η προσφορά παραμένει περιορισμένη. Αυτό έχει ως αποτέλεσμα την αύξηση των τιμών πώλησης σε υψηλά επίπεδα, καθώς οι ιδιοκτήτες κρατούν τις κατοικίες τους αδρανείς στην αγορά.
The Real Estate Market and High Prices
In recent years, the demand for housing has increased significantly, while the supply remains limited. This has led to high selling prices, as owners keep their properties inactive in the market. As long as hundreds of thousands of homes remain “locked” in the balance sheets of investment funds, banks, or even the government, or closed due to the unwillingness of their owners to exploit them (either through renting or selling), selling prices will remain at high levels.
The Impact of Building Permits on Construction Industry
A low supply is expected to further shrink due to the situation created by the building permits of the New Building Code. The legislative gap that has emerged, pending the final decision of the plenary session of the Supreme Court, means that there will be minimal new building permits issued by the end of the year, as the risk for constructors will be high. At the same time, complaints and appeals continue in various municipalities of the country, even for constructions that have already started.
The Impact of Bonus Offers on the Real Estate Market
Until a solution is found to this problem and bonuses stop being a source of controversy (often justified), there will be a construction gap in the entry of new homes into the market. This will redirect some buyers to older constructions, further depleting the stock of homes for sale. In other words, the imbalance between supply and demand will increase, pushing sales prices higher.
