Rental Prices Continue to Soar Despite Falling Inflation in Greece

Although inflation in Greece reached the desired level of 2% in April (according to the targets set by the ECB), this is not adequately reflected in consumers’ wallets. Beyond the irreversible price hikes in basic goods like food, which have not returned to pre-inflation crisis levels despite stabilization, households are grappling with the relentless rise in rental prices. In April, following a 10.5% increase the previous month, rental prices accelerated even further, rising by 10.8%. On average, the annual increase in rents throughout 2024 has hovered around 5.6%. After a brief period of stabilization last fall, prices are once again surging at alarming rates. This trend began post-pandemic and shows no signs of slowing down. Since 2021, rental prices have consistently risen, with annual increases ranging from 4-10%, depending on the year and region. Popular cities like Athens and Thessaloniki have experienced particularly sharp increases. The official average rental cost reported for measures such as the annual refund of one-twelfth of total annual rent does not accurately reflect the reality faced by many families. For instance, while the advertised price for a three-bedroom apartment might range between €700-800 per month, the official average stands at just €255. To address these issues, the government is promoting two key measures: an annual full rent rebate for tenants and the establishment of the Real Estate Ownership and Management Registry (MIDA), both aimed at combating tax evasion and alleviating the housing cost burden.