Greeks spend over a third of their disposable income for housing costs, the most by far compared to any other European Union (EU) country, new data released by EUROSTAT reveals.
According to the EU’s statistical office, in 2023 Greeks spent 35.2 percent of their total disposable income on housing while the European average was 19.7 percent. Greece is followed by Denmark at 25.9 percent and Germany at 25.2 percent. Lower percentages are reported by Sweden (23.9 percent), the Netherlands (22.9 percent) and Bulgaria (21.2 percent).
Hungary, Romania, Austria (19 percent) and Finland (19.3 percent) are closer to the European average.
Those who pay the least for housing in the European Union are the citizens of Cyprus (11.6 percent), Malta at 12 percent and Slovenia (13.8 percent).
In 2023, EU households spent on average 19.7% of their disposable income on housing. 🏠
Highest in:
🇬🇷 Greece (35.2% of total income)
🇩🇰 Denmark (25.9%)
🇩🇪 Germany (25.2%)Lowest in:
🇨🇾 Cyprus (11.6%)
🇲🇹 Malta (12.0%)
🇸🇮 Slovenia (13.8%)Learn more ➡️ https://t.co/4E1bgbwCZE pic.twitter.com/9Zv4WX588e
— EU_Eurostat (@EU_Eurostat) January 3, 2025
Greeks are some of the lowest paid in the EU while their disposable income declines
Greece ranks third from the bottom for the annual adjusted full-time wage at 17,013 euros ($17,546), followed by Hungary at 16,895 euros ($17,424). Bulgaria stands at the very bottom with 13,503 euros ($13,926) while the EU average across the 17-member bloc is 37,863 euros ($39,050).
Greeks are not only some of the lowest paid in the European Union. Greece ranks last among Eurozone’s 20 member states in the purchasing power of wages, right behind Bulgaria. High unemployment and inflation, along with Greece’s slow recovery from the economic crisis are believed to be some of the factors contributing to the decline of the disposable income in Greece.
Figures from the Organization for Economic Co-operation and Development (OECD) show that Greek households’ disposable income dropped by 23.7 percent between 2009 and 2024.
Declining disposable income exacerbates Greece’s housing crisis
The region of Attica, where Athens is located, is the most affected by the housing crisis, which market experts say will continue well into 2025. Since the real estate market started recovering in 2017, buying prices have soared, increasing by 90 percent.
The rental market also struggles, as rental supply is limited and prices have soared as well, increasing by 50 percent in the last five years. The widespread presence of short-term rentals on platforms like Airbnb, especially in central Athens, and thousands of properties that remain unused contribute to the rental shortage for Greeks.
At the same time, Greek banks continue to limit their offers of mortgage loans, making the acquisition of a property for ordinary Greeks quite unattainable.
High demand for Greek properties from foreign buyers
While Greeks see house prices and rentals going through the roof, there is great interest from foreign buyers in several parts of Greece.
Foreign investors, digital nomads, and Golden Visa seekers constitute a burgeoning niche in the housing market. Based on economy figures, credit institutions predict that, in 2024, house pricing will reach the 2008 high. This was a year before Greece’s economic crisis began.
Housing prices showed a double-digit increase in 2023. The Attica region and the wider area of Thessaloniki remain the most popular areas in the country, although the volume of sales has partially declined, as a result of high prices.
According to the Global Property Guide, Greek house prices continue to accelerate due to high demand from foreign homebuyers. There is also increased construction activity that goes along with a gradual economic growth.
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