Athens, Greece. Eirini Syntihaki is leaving her rented apartment in central Athens after the rent was set to rise from an already high 700 euros, nearly her entire earnings. She is moving in with her sister as she says she can no longer afford to stay.
Recovery and mounting pressure on households
Greece’s economy is rebounding sharply from its 2009-2018 financial crisis, with growth outstripping the EU average, the country repaying its bailout loans ahead of schedule, and tourist visits at a record high. However, many Greeks are being left behind as rents soar while earnings fail to keep pace, prompting households to cut spending on items such as heating, entertainment or dining and take on more debt, which experts said is creating a drag on the recovery.
Income strain extends beyond low earners
Greece’s Small Enterprise Institute (IME), a confederation of small businesses, said in a report that “income adequacy is at a record low, with six out of ten households reporting that their monthly income does not reach the end of the month.” The institute added that economic difficulties are no longer limited to low incomes but are also extending to the middle classes.
Housing supply shortages and demand pressures
Many of the problems trace back to the crisis years, when housing construction froze. A Piraeus Bank BOPr.AT report last year estimated a shortage of 180,000 houses for rent or sale in big Greek cities.
Impact of golden visas and short-term rentals
The golden visa program, available since 2014 for foreigners who buy property, has exacerbated the shortage. Since the mid-2010s, 20,000 properties, mainly in Athens, have been sold to foreigners, according to Migration Ministry data, while another 150,000 have been converted to short-term rentals for tourists.
Intense competition for available rentals
Themistocles Bakas, president of E-Real Estate Network, which has offices across Greece, said rental demand is so high that hundreds of people attend a single rental viewing.
Have rising rents affected your housing plans where you live?
