The tug-of-war between sellers’ expectations and market reality is a timeless feature of the real estate sector. This year, however, the gap has widened — with fewer buyers willing to pay premium prices for overvalued properties. After years of sustained price growth, the central question is no longer whether prices will keep rising, but where and how.
Diverging Market Speeds
According to Elias Papageorgiadis, investor and real estate market analyst, the Greek property market is now operating at distinct speeds. The strongest demand is concentrated on newly built units — especially those in prime locations and with modest square footage — as well as smaller-sized properties overall.
For this segment, prices are expected to remain stable or see only mild upward movement. But the picture changes significantly for older properties. Papageorgiadis explains that to sustain buyer interest, the price gap between older and new-build units must be around 25–30%. Citing findings from the 5th Real Estate Market Barometer, he warns that pricing older properties at levels comparable to new builds — without justifying quality differences — will trigger market correction: “The market will penalise sellers, forcing necessary price adjustments.”
A Growing Mismatch
Papageorgiadis also highlights a notable imbalance: the number of sellers is roughly double that of serious buyers. Yet most owners aren’t rushing to sell, holding onto high asking prices. He criticises certain state interventions, arguing that schemes like ‘My Home’ created an artificial price surge — worsening the housing crisis rather than alleviating it.
In contrast, he views recent reforms to the Golden Visa programme and energy efficiency upgrade incentives more positively — provided implementation timelines remain realistic.
Tackling the Housing Crisis
On the broader housing crisis, Papageorgiadis stresses that quick fixes or punitive measures against landlords won’t solve the problem. What’s needed, he says, is unlocking idle housing stock — including streamlining urban planning approval processes for rental conversions.
As part of that effort, he proposes introducing a tenant solvency certificate — a formal verification of income and reliability — to incentivise landlords to lower rents. Regarding the upcoming EU Energy Performance of Buildings Directive, he cautions that if compliance deadlines remain overly tight, thousands of properties could be effectively excluded from the rental market, trapping citizens in a perpetual housing dead end.