Residential mortgage payments in the first half of 2022 amounted to 500 million euros, remaining low both in absolute terms and compared to the level at which they were before the global financial crisis. Characteristically, at the peak of the Greek real estate market, new loans quarterly reached the amount of 3 billion euros.

However, in the first half of this year, payments were 60% higher than in the corresponding period of 2021. According to the financial stability report released by the Bank of Greece a few days ago, “the demand for home loans in the first quarter of 2022 increased to a certain level, then retreated due to a slight deterioration in consumer confidence and a change in the general level of interest rates.”

The average disbursement this year is 75,600 euros per loan with an average duration of 23 years, while on average banks finance 65% of the value of real estate intended for the owner to live in and 80% of real estate acquired for the purpose of exploitation through leasing. However, 96.2% of payments relate to houses purchased for the purpose of ownership, and only 3.8% – loans for the purchase of a house for rent. The Bank of Greece notes that 55.7% of mortgages issued in the first half of this year are fixed-rate products with a maturity of more than 10 years, compared to 26.6% of loans issued with an initial fixed-rate period of less than or equal to one year. year.

Another element pointed out by real estate market operators such as Mr. Charalambopoulos is that approximately 70% or more of purchases and sales are not carried out through the banking system, but exclusively for cash. This is also the main reason why the real impact of higher interest rates on housing demand is estimated to be small. Of course, it should be pointed out here that the higher the prices, the more difficult it will be to buy and sell exclusively for cash.

The Bank of Greece analysis of house price developments shows that along with the rise, inflationary pressures have increased, causing real house prices to slow down. He adds that “expectations for the Greek real estate market remain positive.” Investment interest is expected to remain strong in the short term, especially for specific privileged positions in the Attica Basin and areas with tourist characteristics. In the medium term, initiatives related to supporting certain categories of households (for example, young, vulnerable social groups) in purchasing housing, as well as in renovating old houses (for example, the My Home and Renovation – Save / Rent programs) It is expected that this will improve the housing stock, as well as strengthen the financial situation of these households, concludes the Bank of Greece.