Real Estate Market Stagnation: Majority Watches but Doesn’t Buy

The difficulty of accessing home loans in Greece is highlighted by the 4th ‘Real Estate Market Barometer,’ presented during a live webinar titled ‘Real Estate 2025.Checkpoint.’ The event took place in the ‘500-year library’ of ESHEA, hosted by investor and analyst Elias Papageorgiadis. Specifically, 69% of respondents believe that securing a housing loan today is difficult, with 42% finding the process ‘very difficult’ and 27% labeling it ‘somewhat difficult.’ These percentages have increased since November 2024 when they were 30% and 35%, respectively. This shift is largely due to rising borrowing costs caused by high interest rates. Meanwhile, immediate property purchase intentions have significantly declined. While 23% of survey participants express interest in buying property, only 22% of these—equating to 5% of the total sample—are ready to make a transaction within the next six to twelve months. In November, this figure stood at 34% of potential buyers or 7.8% of the total. Now, most people are deferring decisions, with 26% expecting to buy within the next three years and 51% answering ‘sometime in the future.’ According to Elias Papageorgiadis, for the first time, there’s a notable shift in market balances where real buyers are fewer than sellers. This trend could lead to significant changes in the market scenario. The decline in purchasing power, combined with inflationary pressures, high interest rates, and reduced household affordability, indicates a critical turning point in the real estate market. High prices from previous years, uncertainty about interest rates, and borrowing difficulties push many potential buyers into a waiting stance. Demand is shifting towards more affordable and smaller homes, often older or located away from city centers. The housing crisis in Greece remains evident: while the need for homeownership persists, barriers have never been higher, making the dream of owning a home distant for many.