Greece's housing prices hit 20‑year peak as affordability worsens

In the first quarter of 2026 Greek residential prices rose 5.7% year‑on‑year, pushing the housing‑price index to 111.9, the highest level since 2006 and a 20‑year record. The price gain outpaced inflation, which stayed below 4%, and average wages, which rose about 30% over the preceding five years, creating a widening gap between housing costs and purchasing power. A typical home that cost €200,000 in 2019 now costs roughly €337,000, requiring about 247 average salaries to buy, up from 191 salaries in 2019.

The surge follows a prolonged supply shortage. Investment in residential construction collapsed by roughly 95% between 2007 and 2017, and building permits fell 84% during the crisis years. Although activity is recovering, new‑build output remains far below demand, especially in major cities such as Athens and Thessaloniki. A study notes that about one‑third of the housing stock is vacant, but much of it is in low‑demand locations, outdated, or encumbered by legal issues, limiting its contribution to market supply. Meanwhile, household formation trends—smaller families and more single‑person households—are raising demand even as Greece’s total population declines.

These dynamics continue to pressure the housing market, sustaining high price growth and deepening the affordability challenge for Greek households.