On the trajectory of a smooth slowdown in growth rates, it is predicted that home sale prices next years. According to her prediction Bank of Piraeus in the corresponding study of the course of the economy in 2023, growth rates are expected at the level of 7.4% from 11.1% in 2022. Accordingly, over the next three years (2024, 2025 and 2026), growth will be about 6.5%, 6% and 5.6%.

If these estimates are confirmed, they will first mark the transition of values ​​to buying a home into a new era, how one will be completed full recoveryexceeding the previous maximum, which was recorded in 2007. Depending on the purchasing power rate, as well as inflationit seems that in the coming years, buying a house will be more expensive for most households.

The main reason for the upward trend in prices is certainly an imbalance between supply and demand, as tens of thousands of homes are still stuck between auctions and foreclosures. banks and claims management companies. At the same time, it is estimated that more than 750,000 homes across the country have been taken off the market at the choice of their owners because they are closed and not in use. This is an action that should be strongly stimulated (like the existing program “Save – Update”) for the purpose of reconstruction and gradual return to the real estate market for operation in the form of either sale or rental. A significant percentage of closed properties have significant damage that the owners cannot repair.

The main reason for the upward price movement is the imbalance between supply and demand.

On the other hand, private construction activity remains at a very low level, despite a significant recovery in the last two years. In particular, the number of new building permits in 2022 increased by 126% compared to the low point of 2016, as the number was 9793 compared to 4305. This figure corresponds to approximately 30,000 new apartments, compared to almost 200,000 that were added to the market in the mid-2000s, when more than 40,000 new permits were issued each year and even for several years respectively.

In addition, the sale prices of new buildings currently exceed 3,000 euros/sq.m. and amount to about 4000 euros / sq.m. in most parts of Attica. This means that the acquisition of an average apartment for a family of four, i.e. 100 m2, costs about 380,000–400,000 euros, an amount that of course few can afford, even if they resort to bank loans, which today also prohibitively high. The big increase in the price of new homes is due to the rising cost of construction due to the war in Ukraine, as well as an increase in the labor force, as there is a huge demand for workshops and very little supply. Unfortunately, manufacturers pass these costs on to buyers by raising prices to keep their profits. Another factor, of course, is the fact that all newly built facilities must, in accordance with building codes, be highly energy efficient, which also increases costs significantly.

The only positive thing that could have a significant increase in activity in private construction, at least on a theoretical level, would be that it would cover at least part of the demand from people with high financial standing or with significant liquidity, for example. in connection with the sale of other assets. These buyers today are also turning to used designs in the areas they are interested in. propertyin the absence of new buildings.