Funds invested in 2022 on buying a home across the country, the pattern of the upward trend in demand, but also in prices. This amount is obtained by calculating both the fact that banks they no longer fund 100% of the cost of purchased items real estateas well as the fact that only 20% of purchases and sales are made through bank lending.

So according to her TTE, a total of €1.1bn of home loans disbursed in 2022, an amount that, although up 42% compared to 2021, still represents only 10% of the corresponding funds disbursed during the bubble in the real estate market. property. According to the Bank of Greece, in the period 2005-2007, on average, amounts of about 12 billion euros were issued annually.

For 2022, it is estimated that banks finance approximately 65% ​​of the value of purchased real estate. This means that the total value of real estate acquired through bank loans amounted to 1.45 billion euros. If this amount was 20% of the total, then the total value of investments in the real estate market amounted to 8.4 billion euros. It is recalled that only 2 billion euros amounted to funds flowing in from abroad to purchase real estate in Greece.

Another interesting element is the low cost of real estate financed by banks. According to the Central Bank for the fourth quarter loan payments with a guaranteed residence amounted to 337 million euros, an increase of 31.4% year on year. In particular, 4,069 loans were issued with an average value of 82.7 thousand euros at a financing rate of 61% of the cost. This means that the average value of real estate purchased on credit in the last three months of 2022 was only 115,000 euros. This is a clear sign that those who are looking for financing to buy real estate have low liquidity. However, in the fourth quarter of the year, the total investment was estimated to have exceeded 2.15 billion euros, when also taking into account purchases financed solely by equity.

Last year, mortgage loans were issued for 1.1 billion, while in the period 2005-2007 they reached 12 billion euros per year.

At the same time, as evidenced by lending dynamics in 2022, the recent increase in interest rates has led to a decrease in the average cost of financed real estate, despite the fact that prices show a strong upward trend. This borrowers they have adjusted their requirements and finally opted to purchase houses with lower specifications compared to the first half of 2022, when the monetary policy adjustment had not yet begun, which also increased the cost of borrowing significantly.

In particular, based on the data mentioned in the previous Bank of England Financial Stability Report, it is estimated that the average cost of homes purchased with a mortgage loan during the first half of 2022 was 124,740 euros, i.e. almost 20% more expensive. compared to the fourth quarter of the same year. In the first half of the year, the average payment amounted to 75.6 thousand euros, while banks on average financed 65% of the value of real estate intended for residence by the owner. In total, mortgage loans were issued in the amount of 500 million euros in the first half of the year.

At the same time, the growth rate home sale prices marked a significant increase during 2022. In particular, for 2022 as a whole, the average growth was 11.1% compared to 7.6% in 2021 and 4.5% in 2020. The quarter-to-quarter acceleration was also significant, with prices up 9.9% in the first quarter. on an annualized basis, but growth in subsequent quarters was 10.4%, 11.7% and 12.2%, respectively, compared to the fourth quarter of the year. According to the Bank’s analysis, “expectations for the Greek housing market remain positive, as investment interest from abroad will remain strong in the short term, especially in areas with tourist characteristics or in special privileged positions in the Attica Basin.

In the medium term, the CoE notes that initiatives related to supporting the purchase of housing for certain categories of households (for example, young, vulnerable social “Programs / Rent”) are expected to improve the housing stock, as well as strengthen the financial situation of these households.