Greece’s housing market has suffered another blow following a lengthy disruption triggered by a Council of State decision last December, which annulled the construction “bonuses” permitted under the New Building Regulation (NOK).
The ruling created months of uncertainty in the permit process, effectively freezing new projects until the Greek Ministry of Environment and Energy introduced corrective legislation mid-year.
Sharp decline in new housing permits
The impact is now reflected in official data. According to the Hellenic Statistical Authority (ELSTAT), only 20,946 housing permits were issued nationwide between January and July 2024, a 26.6% drop compared to 28,541 during the same period last year.
In Attica, where housing shortages are most severe, permits fell by 15.5%, totaling just 6,281 new homes, down from 7,436 a year earlier.
Long-Term Construction Slowdown Weighs on Greece’s Housing Market
Even before the recent setback, housing development had been dramatically lower compared to pre-crisis levels. Between 2001 and 2011, over 303,000 new homes were built in Attica. In the following decade, only 48,622 were added — just 16% of the previous total.
Across Greece, the average annual number of new homes fell from 52,000 in 2001–2011 to only 26,000 in 2011–2021, with Attica accounting for just 4,500 per year. This 85% decline explains much of the current housing shortage.
Rising costs push ownership further out of reach
With limited supply and high demand, new housing prices have soared. In Attica, the average cost now stands at around €4,000 ($4.625) per square meter, meaning an 80 square meter home would cost roughly €320,000 ($370.064).
Even for families eligible for bank loans, strict lending criteria and high repayment costs make home ownership increasingly unattainable.
Calls for bold urban policy reforms
Experts stress that solving Greece’s housing crisis will require more than new construction. They urge bold reforms to urban planning laws to reduce bureaucracy and allow for the redevelopment of abandoned industrial zones and underused land.
Such initiatives could expand housing supply and support public-private partnerships for affordable housing projects.
Greece’s Housing Market Awaits a New Building Code
Greece’s housing market now awaits the release of a revised Building Regulation, expected to clarify legal ambiguities created by the court ruling.
Government officials have promised a simpler, legally robust framework, one that could restore investor confidence and help revive Greece’s stagnant housing sector.