started · updated
Greece economic outlook: Inflation and real estate trends
The Bank of Greece has issued updated economic forecasts, projecting that harmonized inflation (HICP) in Greece will rise to 3.5% in 2026, driven by high energy costs and persistent service sector inflation. A gradual decline is expected in 2027 and 2028 as energy prices stabilize.
In the real estate market, apartment prices saw a 5.5% annual increase in the second quarter of 2026 compared to the previous year. New constructions experienced a higher growth rate of 6.2%, while older properties rose by 5.0%. Geographically, price increases were most significant in other regions of the country at 7.1%, compared to 5.0% in Athens and 4.7% in Thessaloniki.
Energy and fuel costs remain volatile, with gasoline prices reaching 2.16 to 2.20 euros per liter due to global supply constraints. Conversely, the Greek electricity market showed a significant 27.5% drop in wholesale prices, aided by high renewable energy participation.
Labor market data from ELSTAT indicates mixed results: industrial employment rose by 1.2%, while the service sector saw a 1.1% increase. However, vacancies in the economy rose by 19.4% annually to reach 46,368 positions. Additionally, the unadjusted wage cost index increased by 4% in the second quarter of 2026.
Entities
Athens · Bank of Greece · Condé Nast Traveller · Crete · European Central Bank · Eurozone · Greece · Hellenic Statistical Authority · INSETE · Thessaloniki · Western Greece
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Inflation in Greece is expected to be 2.9% in 2025.
- [○ 1 SOURCE] Staff and service quality in Western Greece received a score of 9.8.
- [○ 1 SOURCE] Energy prices and the services sector are driving inflationary pressures.
- [○ 1 SOURCE] Western Greece achieved a tourism experience score of 9.4 out of 10 in Q2 2026.
- [○ 1 SOURCE] Inflation in the eurozone is projected to peak at 3.6% in the fourth quarter of 2026.
- [○ 1 SOURCE] The Bank of Greece estimates harmonized inflation (HICP) will rise to 3.5% in 2026.
- [○ 1 SOURCE] Western Greece's sustainability score is 7.0, significantly lower than the national average of 8.4.
- [○ 1 SOURCE] International arrivals to Greece increased by 38% in the first months of 2026.