# Greek residential property price recovery picks up in third quarter Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-11-29 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Greece's Housing Sector Rises as Economy Expands Meta Description: Discover how Greece's property market surge in Q3 with an 11.2% increase in apartment prices, driven by economic expansion and foreign interest. URL: https://financedigest.com/greek-residential-property-price-recovery-picks-up-in-third-quarterhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-11-29t104446z1lynxmpeias0e8rtroptp4greece-economy-housing-rents-1736814800750-compressed.jpg) By George Georgiopoulos ATHENS (Reuters) – A recovery in Greece’s residential real estate market picked up pace in the third quarter, as the economy continued to expand and inflation rose near a three-decade high, central bank data showed on Tuesday. Property makes up a big chunk of household wealth in Greece, where the home ownership rate is about 73.5%, above the euro zone average of 66%, according to European Union statistics on income and living conditions. Greece’s housing sector recovery has been [driven by an expanding economy](https://www.financedigest.com/turkeys-economy-grew-7-6-in-q2-driven-by-domestic-demand-exports.html "Turkey’s economy grew 7.6% in Q2 driven by domestic demand, exports") and foreign interest. Apartment prices rose 11.2% in the third quarter from the corresponding period a year earlier, Bank of Greece data showed, and the pace was up from a 10.1% increase in the second quarter. The uptrend benefited all areas of the market, including old and newly built apartments, and all regions, although [price gains](https://www.financedigest.com/oil-prices-stable-heading-for-weekly-gain.html "Oil prices stable, heading for weekly gain") in capital Athens led the way. Prices rose by 13% year-on-year in Athens, where home-sharing platforms such as Airbnb and a “golden visa” programme – a renewable five-year resident’s permit in return for a 250,000-euro ($285,000) investment in [real estate](https://www.financedigest.com/gold-london-real-estate-and-the-theresa-may-effect.html "GOLD, LONDON REAL ESTATE AND THE THERESA MAY EFFECT") – became popular. Greece’s economy grew at an annual 7.7% clip in the second quarter, [beating forecasts](https://www.financedigest.com/ferragamo-sales-beat-forecasts-in-h1-despite-slowdown-in-china.html "Ferragamo sales beat forecasts in H1 despite slowdown in China"), but slowing from a pace of 8.0% in the first quarter, on strong consumer spending and investments. Consumer inflation accelerated to 12.0% in September, near a three-decade high, after [surging costs](https://www.financedigest.com/suedzucker-quarterly-profits-surge-73-5-despite-cost-rise.html "Suedzucker quarterly profits surge 73.5% despite cost rise") for energy, housing, transport and food. [House prices](https://www.financedigest.com/buy-off-plan-to-beat-stalling-house-prices-and-falling-rental-yields-says-jean-liggett.html "“Buy off-plan to beat stalling house prices and falling rental yields” says Jean Liggett ") fell 42% between 2008 – when a protracted recession began – and the end of 2017. The [market was hit by property](https://www.financedigest.com/2017-spanish-property-market-gems-kyero-com-gazes-into-the-crystal-ball.html "2017 Spanish property market gems – Kyero.com gazes into the crystal ball") taxes imposed to plug budget deficits, tight bank lending and a jobless rate that peaked at 27.8% in 2013. Economic prospects improved later, with Greece emerging from its latest bailout in August 2018 and now accessing international [markets for funding](https://www.financedigest.com/market-turmoil-a-boon-for-trend-following-hedge-funds.html "Market turmoil a boon for trend-following hedge funds"). Following is a table on Greek apartment prices from Greece’s [central bank:](https://www.financedigest.com/testing-waters-hungarys-central-bank-flags-cut-in-top-end-of-rate-corridor.html "Testing waters, Hungary’s central bank flags cut in top end of rate corridor") \\*\\*\\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\* 2016 2017 2018 2020 2021 Q3 Index 59.6 59.0 60.1 67.3 72.4 81.9 Change y/y % -2.4 -1.0 1.8 4.5 7.8 11.2 New (up to 5 years) 61.2 60.7 61.9 70.0 75.7 86.0 Change % -3.0 -0.8 2.0 4.9 8.1 12.2 Old (older than 5 years) 58.6 57.9 58.9 65.6 70.4 79.4 Change % -2.0 -1.2 1.7 4.2 7.2 10.5 —————————————————————- source: Bank of Greece (Reporting by George Georgiopoulos; Editing by Clarence Fernandez) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---