The market real estate is one of her most basic levers Greek economywith its course affecting GDP, the standard of living and individual sectors and sectors of the economy.
Despite the recent rise in prices, according to converging research estimates, interest in buying a housing remains strong, as for many Greeks real estate is considered the safest means of storing wealth. At the same time, international indicators show when a market may be close to the over -duty limits, while providing investors and buyers practical tools for more documented decisions. But what is the importance of the real estate market for the economy and why should citizens know it?
As the Center for Financial Responsibility, implemented by Dovalue, points out in collaboration with the Financial Laboratory of the Department of Business Organization and Management of the University of Piraeus, the proper understanding of the factors that shape prices and the real dangers is directly linked to social stability.
More specifically, according to the data presented by the Center, the importance of the real estate market for an economy is reflected in five main axes:
- Economic impacts with a strong imprint on society and banking system: The real estate market contributes significantly to GDP through investment, building activity and trading in homes, commercial real estate and tourist infrastructure. Price fluctuations affect inflation, purchasing power and stability of the financial system, as housing loans are a large part of bank funding.
- Wealth and Investment Media: For most people, the real estate market is the biggest investment they will make in their lives. Properties are considered fixed assets, with long -term value preservation and the ability to produce income through rental. In unstable economies, they act as a “safe haven” against inflationary pressures and financial crises.
- Social and family significance: Housing is not just an economic transaction, but a foundation of quality of life. The acquisition of property provides stability, security and family well -being. Market trends affect urban landscape, travel, social cohesion and access to basic services.
- Business and Development Opportunities: The real estate market includes not only houses, but also business areas, tourist real estate and land investment. Infrastructure development, “smart” buildings technology and energy efficiency affect investor and users options.
- Reflection of financial health: Market state acts as a barometer of the economy. Anodes means growth and confidence, while a crisis, such as 2008, had an impact on the financial system and society.
With these facts, understanding the dynamics of the real estate market is critical to investors, individuals and policy -making bodies.
Indicators to evaluate home
Another important dimension that analyzes the center concerns the evaluation of whether a home is cheap or accurate through internationally recognized indicators. Often, buyers are based on their personal feel or comparisons with acquaintances, but the numbers give a cooler and objective image.
Specifically according to the information note of the Financial Responsibility Center, the first indicator is The Price-To-Income Ratio Price Indexwhich measures how many years of net annual income is required to buy an average housing.
Prices between 3 and 5 are considered good, 6 to 8 margins and over 8 possible overvalue or bubble. For example, if a property costs 200,000 euros and the net annual income of a household is 20,000 euros, then the index is 10, indicating high costs over income.
The second indicator is The Price-To-Rent Ratio price indexcomparing the purchase price with the annual rent, showing which choice, purchase or rental, is more advantageous. Levels 10-15 mean that the market is in the interest of a 16-20 balanced relationship and over 20 that rental is likely to be advantageous.
Reversing the index, the annual yield is calculated, e.g. index 20 equals 5% yield. These indicators do not replace individual needs or preferences, but are a key tool for avoiding exaggeration and decision -making based on data rather than expectations.
These indicators, point, do not replace the personal estimation or needs of each buyer, but are objective tools to evaluate the market with calm. Knowing these indicators helps to avoid exaggeration and “bubbles” and to support our decisions on data, not just in expectations
Combined use helps them detect possible overruns and ensure greater transparency in the market. According to the analysis of the Financial Responsibility Center, home is not only economic size but also a social pillar.
Stability in this area contributes to family security, social cohesion and the wider resilience of the economy.
There are also several reliable indicators to buy real estate in Greecewhich provide a picture of the prices, trends and market dynamics, either for housing or for business real estate. These indicators are published by institutions, banks, real estate networks and research institutions. In the informative note, they are mentioned inter alia:
- The Home Price Index – Bank of Greece (BoG). The most formal and reliable indicator in Greece. It provides data on the prices of old and new houses, separated by region (Athens, Thessaloniki, big cities, rest of the country). Updated quarterly. It has separate rates for rent, business real estate, etc.
- Real Estate Trade Indicators – ELSTAT & ICAP. Statistics for new buildings, building permits, construction value. Useful for monitoring building activity.
- Investment Demand Indicators – Enterprise Greece, Golden Visa Stats. Data for foreign real estate investments via Golden Visa. Indications for prices pressure in specific areas (eg Athens center, southern suburbs, islands).
The real estate market acts as a mirror of a country as in periods of growth, it feeds on growth, enhances trust and creates opportunities. In times of crisis, maintaining its balance is critical to protecting households, investors and the stability of the financial system itself.
Knowing the indicators, understanding market incentives and adapting to new technological and energy requirements can make the difference between a healthy and sustainable development and a cycle of overcoming that results in crisis. At a time when the roof is at the center of public debate, informing and responsible decision -making remain the best guarantees for a market that will serve both the economy and society.