House prices to stop rising

Some property market experts have started fretting over the possibility of an imminent reduction in housing sale prices, mainly due to the formation of conditions of reduced demand.

Although, to date, the supply and demand balance remains in deficit, which also explains the continuous increases in values, it seems the market is rapidly heading toward stabilization.

This has already emerged from the course of transfers, as transfer tax revenues from real estate transfers fell by 4.1% to 303.5 million euros in January-July this year, compared to the same period last year.

In fact, over the first three months of 2025, the decline had reached 17%, but in the following quarter there was a recovery in transactions, as a result of the significant contribution of the “My Home” program.

The market reports that without the program’s impact on demand, prices would most likely have already stabilized and some mild reduction would have been recorded in areas of lower demand. Of course, the fact that this year’s trend in tax revenues from transfers is downward is a significant development, especially considering the price increases that have occurred.

According to Bank of Greece data, the second quarter of this year ended with an annual increase in housing sale prices of 7.3% nationwide (from 7% in the first quarter), while in Attica the price increase amounted to 5.9% (from 5.2% in the first quarter) and in Thessaloniki to 9.9%. Although the values are higher (and the asking prices even higher), the income from transfers is falling, which means that the number of purchase and sale transactions is lower compared to last year.

This fatigue concerns both domestic buyers and those from abroad. The 4th Real Estate Market Barometer, presented in June by the University of Macedonia, concluded that the number of actual buyers has decreased, while they also now have less money available to purchase a home. Among those who declare that they are interested in purchasing a property (23% of the total study sample), only 22% plan to make such a move immediately or within the next 12 months.

Source: eKathimerini.com