The luxury housing market in Greece is experiencing increased demand, with the value of purchase agreements concluded in the first half of 2024 showing an impressive 90% increase compared to the same period last year. The US market remains the leader in demand, while for the first time, Greek buyers have risen to second place in the demand for luxury homes, according to Greece Sotheby's International Realty.
Simultaneously, in the first two quarters of the fiscal year, demand increased by approximately 11%, while the number of property viewings remained at the same levels as the same period in 2023.
Based on Greece Sotheby's International Realty's assessment, the aforementioned data represent a natural adjustment by sellers to more realistic valuations of their portfolios, while also signaling a partial return to normalcy compared to the previous two years. During that period, buyers were quite hesitant amid broader geopolitical and macroeconomic uncertainty.
The dramatic decline in inflationary pressures played a significant role in improving buyer expectations, as major markets like the US, the UK, and the European Union managed to tame inflation, which had reached a three-decade high for the first time, causing global concern.
Following the trends of previous years, the US market holds the top position in demand, remaining at the same levels as the first half of last year.
What is worth noting at this point is that domestic demand from the Greek market has climbed to second place, leaving the United Kingdom in third.
The percentage increase in interest from Greece saw an impressive rise of 67%, while the corresponding figure for the UK hovered at +24%. The French market came in fourth, remaining at the same demand levels as the first half of 2023.
As expected, demand from the German market experienced a significant decline of around 23% due to the major crisis that has been plaguing the real estate market in the country for the past two years, with historically low consumer sentiment indicators.
Based on the figures from the first half of the year, Savvas Savvaidis, President & CEO of Greece Sotheby’s International Realty, stated the following:
"Looking at the figures from the first two quarters from a long-term perspective, we saw property sellers readjusting their asking prices to more realistic levels and being more flexible in sales negotiations.
For the first time in a long time, we are seeing such a high conversion rate of property viewings into sales, and this is clearly due to the fact that buyers are willing to buy and at the same time are able to close purchase agreements at reasonable prices."
At the same time, he added, "It is worth taking into account that the buying mood in the luxury second home market is particularly volatile. A significant percentage of these purchases are impulsive, and our country, having only a 3.5% share of purchases in the Mediterranean in this category, is far from being considered an established destination for Ultra High Net Worth Individuals."
The unprecedented high levels of inflation in 2023 (we hadn't seen inflation at levels of 8% since 1991) and the climate of international uncertainty with new outbreaks of geopolitical unrest, reduced buyer sentiment last year at a time when a large portion of Greek sellers were raising their asking prices.
It is common for there to be a lag in the expectations of buyers and sellers in the real estate market since the sales process can take an average of 3 months to 12 months, depending on the country, location, and phase of the market cycle.
In any case, a proper assessment of a property's value is crucial, says Maria Gouma, Corporate Director of Greece Sotheby's International Realty.
In recent years, we have seen a significant number of properties in our country presented at selling prices far above their actual value. This practice, although seemingly harmless, in reality creates multiple problems for the properties themselves with a high cost.
A house that remains on the market for a long time creates negative impressions, suggesting potential problems or excessive demands from the sellers. Furthermore, successive price reductions over time create even greater damage to the property's reputation, even when the property eventually reaches realistic price levels.