Published in REPORTS

S. Himoniti-Terroviti. 2005. | ISBN: 960-341-061-6


In this Report the current situation in the Greek housing market is described and analyzed as it has developed since the late nineties under the influence of mortgage credit which has extended more than ever before. The role and function of borrowing is highlighted and analyzed in relation to other factors as taxation and local market particularities encouraging home ownership and investment in real estate in general. The prospects of the market and the growth rate of prices are discussed under these circumstances.

The overview of the housing market developments goes back to the seventies because this period allows a better presentation of the underlying factors and the illumination of the short run and long run effects.

Recent phenomena in the housing market, as the high price rises and large credit extension are described and discussed in a more detailed way. The available data of housing credit and house prices are compared in several instants over time and in relation to the supply of new housing and the development of the housing stock.

Based on the conclusions derived from the analysis, some recommendations are made as to policy directions which may contribute to better handling of supply and demand in housing.