The cost of purchasing a home in Greece has reached its highest level since 2007, requiring on average 12.5 years of household income, according to a new report by Eurobank Research.
The study, authored under the direction of Chief Economist Dr. Tasos Anastasatos, attributes the decline in housing affordability to a combination of surging property prices, tight credit conditions, cost of living, negative household savings, rising home demand, procedural delays in subsidized programs, and a negative consumer sentiment.
The Median House Price–to–Gross Disposable Income Ratio is a standard economic indicator used to measure housing affordability. It expresses how many years of gross (or net) annual household income are needed to buy a median-priced home. This ratio, which had dropped to 11.4 during the Greek financial crisis, is nearing levels last seen in 2007 when homeownership cost 14.3 years of income.
Although the Eurobank analysis maintains that buying remains comparatively more affordable than renting, the ability of Greek households to invest in property is hindered by strict mortgage lending criteria and weakened household savings, which stood at -3.3% of disposable income in 2024.
General sentiment also plays a role, as many households seem wary of long-term commitments, fearing yet more economic instability. Greece’s cost of living has also risen from 2020 to 2024, with food prices jumping more than 30%.
As a result, total mortgage lending in Greece fell to 1.4 billion EUR in 2024, 83% lower than the average before Greece’s financial crisis.
Eurobank identifies three key structural barriers to homeownership in Greece.
First, rising property prices combined with persistent inflation make households hesitant to take on long-term financial obligations.
Second, increased demand from foreign buyers has driven up prices of lower-cost properties, reducing availability for Greek households who rely on housing loans.
Third, complex and slow property transfer procedures lead Greek home sellers to favor cash buyers, excluding most Greek households.
Eurobank warns that, although rising property prices are an incentive for renewed construction activity, the growing lack of affordable housing has serious economic and societal consequences.
Considering that the housing crisis in Greece is a supply issue, Eurobank warns that any policies which increase housing demand in Greece will end up further increasing prices. To rectify the situation, the Eurobank analysis recommends that the Greek government should prioritize policies which increase the supply of affordable housing.
