Property market slowdown

The Greek property market has begun to exhibit signs of fatigue following a robust start to the year, according to recent data released by the Hellenic Property Authority. Activity that surged during the first months of 2026 appears to have slowed down in April and May, despite ongoing government support measures and renewed interest from foreign buyers. While the overall market remains active, the combination of high prices and limited housing availability is beginning to temper growth. The slowdown became evident in the latest figures published by the authority, which cover transactions from April and May. These numbers indicate a year-on-year decline in revenues generated from the transfer tax, although the market still operates at elevated levels. This follows a strong first quarter, during which the market received a significant boost from the implementation of the “My Home II” program and a surge in domestic and international demand for housing. For the first five months of 2026, total revenue from the property transfer tax reached €246.81 million, marking a 4.6% increase compared to the same period in 2025. The bulk of this revenue came from building transfers, which saw a rise of nearly 6%, reaching €207.47 million. However, the value of land and agricultural plot transfers dropped slightly, amounting to €39.34 million versus €40.26 million in the previous year. The continued demand for housing has collided with a constrained supply, leading to rising prices. This dynamic has made it increasingly difficult for some households to afford purchases, thereby limiting the pace of new transactions. Although the market remains buoyant, these factors suggest a potential shift in momentum. According to the Real Estate Transfer Value Register, over 16,400 properties changed hands in the first half of 2026, generating a combined value of €1.75 billion. This figure underscores the sustained level of activity within the sector, even as underlying pressures begin to emerge. The initial surge in the property market was largely driven by the “My Home II” initiative, which aimed to stimulate homeownership through financial incentives. Combined with a growing appetite from overseas investors, the program helped sustain a high level of transaction volume early in the year. However, the current data suggests that the market may be experiencing a natural plateau after such a rapid start. Analysts note that while the slowdown does not necessarily signal a downturn, it indicates that the market's earlier trajectory might be leveling off. High prices continue to be a barrier for many potential buyers, especially first-time purchasers who find themselves priced out of the market. This situation could lead to a more gradual pace of growth in the coming months. Industry experts are monitoring how long the current trend will persist and whether additional policy interventions might be necessary to maintain momentum. For now, the market remains active, albeit with signs of moderation. The challenge ahead lies in balancing affordability with the need to sustain investor confidence and ensure continued participation from both local and international buyers.