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The demand for 1970s apartments in Athens and Thessaloniki is on the rise again. Older residential buildings, which make up 55% of Greece's multi-family and single-family homes, are the most common in the country and are attracting significant interest due to the "Spiti Mou 2" ("My Home 2") program.
The Greek real estate market remains under pressure, with supply approximately half of the demand, prompting the introduction of the government housing program. It offers favorable financial conditions for young individuals and couples aged 25-50. Participants can purchase their first home with subsidized loans based on income and family status.
In 2025, the program is expected to further stimulate the market and increase demand for resale properties in popular areas priced between €120,000 and €250,000. However, buyers who do not rely on the program's benefits are expected to show growing interest in newly constructed properties, particularly "green" projects. This shift is driven by upcoming energy efficiency requirements, which mandate that no property can be rented or sold between 2028 and 2032 without an energy system upgrade.
Experts believe the focus on "Spiti Mou 2" participants will act as a buffer against potential signs of market fatigue. A study conducted by the University of Macedonia reveals dynamic changes in the Greek real estate market, including a decline in the share of potential buyers from 28% to 22% and sellers from 9% to 7% in the second half of the year compared to the same period last year.
Despite skepticism, with 66% of respondents viewing price increases as "irrational" or a "bubble," 51% expect prices to continue rising. Specifically, 55% anticipate growth in prices for older homes, and 75% predict increases for newly built properties.
The "Spiti Mou 2" program is expected to serve as a barometer for real estate prices. Prices are forecast to stabilize but not drop below May 2025 levels after the program concludes. A critical factor influencing future trends in prices and rentals will be whether owners of vacant properties decide to put them on the market.
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