Greece mortgage market sees 35% surge in disbursements

Greece is experiencing a significant surge in the mortgage market, with the four systemic banks recording a 34.9% increase in mortgage disbursements during the first eight months of 2026, reaching approximately €1.835 billion. This growth is driven by both traditional lending and state-supported initiatives like the ‘Spiti mou’ program, which saw disbursements rise by 54.6% to €589 million. Notably, fixed interest rates for certain mortgage categories in Greece, such as those for 1 to 5 years, averaged 2.89%, which is lower than the Eurozone average of 3.57%.

Parallel to the credit expansion, the Greek banking sector shows strong performance on the stock market, with the sector index rising 38% since the start of the year. Analysts from Alpha Finance-AXIA suggest that high profitability is expected to continue through 2028, supported by higher interest rates and improved asset quality. Major banks, including Eurobank, Piraeus, National Bank, and Alpha Bank, are projected to reach combined annual profits of approximately €4.8 billion, potentially leading to significant dividend distributions to shareholders.

However, economic pressures remain evident for Greek households. ELSTAT reports that average monthly household spending reached €1,820.20 in 2025, an increase of 5.5% from the previous year. Data indicates that many households struggle with negative savings, with some reports suggesting that 6 in 10 Greeks rely on loans or credit cards to cover essential bills. Additionally, while mortgage demand is rising, lending only covers 23% of real estate transactions in Greece, compared to a European average of 45%.