Property Prices Take a Dip: Unraveling the 2023 Market Transformation

As at the beginning of the year, so in the second quarter, the prices of apartments moved upwards with a strength that reached 9.2%. Although apartments became more expensive, the rate of increase is considerably less than the 10.6% of the first quarter by 1.4% and the 14.8% of the second quarter of 2023, by 5.6%. Compared to last year’s second quarter, this year’s increase is 37.84% weaker. Development that seems to confirm the estimates of brokers and market analysts, that prices are headed for stabilization until 2025 – 2026.

X-ray

This year’s increases are for the second quarter smaller than last year, with the data pointing to a peak in the upward price trend in the first half of 2023. Overall last year, apartment prices rose at an average annual rate of 13.8%, compared to an increase of 11, 9% in 2022. In particular, according to the Central Bank, the price increase in the second quarter of 2024 compared to the corresponding quarter of 2023 was 10.7% for new apartments, and 8.3% for old ones. Based on the revised data, for 2023 the average annual rate of increase in prices for new apartments was 12.8%, compared to a growth rate of 12.5% ​​in 2022, while the average annual rate of increase for old apartments was 14, 5% in 2023, versus a growth rate of 11.6% in 2022.

The… map

Of particular interest are the data per geographical region, from which it emerges that the increase in apartment prices in the second quarter of 2024 compared to the corresponding quarter of 2023 was 9.1% in Athens, 12.1% in Thessaloniki, 7 .3% in the other big cities and 10.4% in the other regions of the country. For the whole of 2023, the price increase in the same regions compared to 2022 was 13.8%, 16.5%, 14.9% and 11.6% respectively. Finally, for all the urban areas of the country, in the second quarter of 2024, apartment prices were on average increased by 9% compared to the second quarter of 2023, while for 2023 the average annual increase was 14 .2%. It is worth noting that despite the biggest rise in prices in Thessaloniki, prices remain considerably lower than those in Attica.

APARTMENT PRICE INDICES
2022 2023* 2023* 2024*
β΄ γ΄* δ΄* α΄* β΄*
TOTAL (%) 11,9 13,8 14,8 12,6 12,4 10,6 9,2
BY SENIORITY (%)
New (up to 5 years) 12,5 12,8 13,8 12 11,7 11,1 10,7
Old (over 5 years) 11,6 14,5 15,5 13,1 12,8 10,3 8,3
BY GEOGRAPHICAL AREA (%)
Athens 13,9 13,8 14,9 12,5 11,1 9,5 9,1
Thessaloniki 12,7 16,5 17,6 16,1 15,2 12,8 12,1
Other big cities 11 14,9 15,9 14,4 14,3 11,2 7,3
Other areas 8,2 11,6 12,4 10 12,4 11,6 10,4
Urban areas (total) 12,4 14,2 15,2 13,2 12,5 10,9 9

Source: Bank of Greece. * Provisional data.

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