The Greek housing market showed resilience in 2020 despite the fact that the economic impact of the pandemic was overall unfavorable, according to a report by the credit rating agency DBRS.
After an overall increase of 9,2% in the two years 2018-19, the increase in house prices slowed down in 2020 due to severe travel restrictions and other COVID-19 measures, the report said, but the performance remained positive with a rate 4,6%.
Provisional data from the Bank of Greece show that house prices continued to rise at an annual rate of 3,3%, despite the imposition of new restrictive measures in the first quarter of 2021.
The Greek real estate market is highly dependent on foreign investment, which results in larger increases in Athens and other popular tourist destinations. On the contrary, prices and transactions in other parts of Greece, which attracted more limited investment interest, although they probably benefited from the transmission effect, are still low, according to the report.
In the long run, he adds, the evolution of the housing market as a whole will depend on Greece's ability to create jobs and promote policies to support real income growth, while maintaining a stable macroeconomic environment that leads to attracting foreign investment.
The main conclusions of the report are the following:
• The housing market shows resilience in 2021 despite the economic impact of the coronavirus crisis.
• Higher price increases are observed mainly in Athens and in areas of interest for tourism investments, which have an impact on other areas.
• The development of the housing market as a whole will depend on the long-term development prospects of Greece.