The home, the most basic human right, is becoming an increasingly unmistakable dream for thousands of Greeks. According to data released by the Ministry of Social Cohesion and Family, Greece is one of Europe’s ten most expensive countries in terms of real estateif one takes into account the price ratio to income.
In 2024, the real estate market index for our country stood at 104.18% – exceeding not only the 100%psychological limit but also the average of the European Union (98.43%). It is an indicator that compares the present price relationship to income with its historical average. When the percentage exceeds 100%, it means that real estate prices are higher than those justified by income, given what has happened over time. In other words, houses have become more expensive than citizens’ ability to buy them.
Greece, with an index of over 104%, is one of the countries in the “pressure zone”. Although it is far from precision champions – Portugal (128%), the Czech Republic (123%) and Luxembourg (120%) – it is much closer to the markets that have begun to disconnect from the reality of income.
But what drives the Greek real estate market in this imbalance? The answer is complex. On the one hand, the rise of short -term leases (Airbnb) has limited the availability of houses for long -term leasing, causing prices increase. On the other hand, Greece’s attractiveness as an investment destination through the Golden Visa program has boosted demand from abroad, raising prices even further.
At the same time, 790,000 closed houses are estimated in Greece, according to AADE data. Of these, about 225,000 are in Athens and Thessaloniki, two areas where the demand for home is steadily high. All this happens at a time when incomes remain stuck and the construction of new houses remains limited.
Even if we compare Greece to other countries that are at a similar or lower level of growth. Italy and France, for example, have indicators of around 98% – that is, slightly below the European average. Denmark and Finland are close to Greece, but remain marginally more “balanced” than the price and income connection. Even more impressive is the case of Spain. With only 87.03%index, it emerges as the country with the healthiest price-lecturer in the EU. The explanation lies in the deregulation of the Spanish market after the crisis of the previous decade: the decline in prices created a cycle of stabilization, allowing citizens to regain ground.
In contrast, Germany is surprised by the lowest index among the 28 European countries – below 60%. Despite the size of its economy and high urbanization, the German real estate market remains relatively accessible. Here, both the regulated rental market and the widespread support policy of social residence play a role.
The image of the map with prices “blush” as we move away from the European average is not just a technical record. It’s a social bell. For Greece, this situation shows that housing is in crisis. Not in the sense of inability to construct, but in terms of the failure of the system to ensure an affordable home for all citizens.
The placement of the country above the European average in a period of inflation and increased interest rates urges the need for targeted policies. Strengthening social housing programs, limiting the impact of short -term leasing, providing incentives to build new affordable homes, and protecting the first home – are just some of the tools that are required to be activated immediately.
If the home becomes permanently inaccessible to middle and low incomes, the consequences will not only be economic – they will be deeply social and political. Greece is on the threshold: either it will turn the problem into an opportunity to reform, or will see the crisis of the home evolve into a cohesion crisis.