Athens, November 3 – A comprehensive study by Deloitte has revealed the stark reality of housing affordability in Athens, placing the Greek capital in second position among Europe’s most expensive cities for homeownership when income levels are factored into the equation. The research shows that purchasing a newly built 70 square meter apartment requires 15.3 years of gross salaries.
Athens Trails Only Amsterdam in Affordability Crisis
The only European city where the cost of acquiring new housing is higher relative to income is Amsterdam in the Netherlands, where residents need 15.4 annual salaries. The average purchase price in Athens has reached 8,475 euros per square meter, representing an annual increase of 10.1 percent.
According to the analysis, the average selling price of newly built homes in the Attica region now stands at 4,100 euros per square meter, up 10.8 percent over the past year. This means that a 70 square meter apartment now costs approximately 287,000 euros.
Athens Prices More Than Double National Average
The study reveals that housing prices for new construction in Attica are 2.28 times higher than the national average of 1,800 euros per square meter. This disparity reflects the chronic problem of population overconcentration in the Athens basin and explains the significant gap between the capital and the rest of the country in terms of pricing.
Real estate market professionals and analysts emphasize that without decentralization, demand will continue to outstrip the already limited supply. The only European city that exceeds Athens in this metric is Paris, where the average selling price is 3.32 times higher than France’s national average, at 10,760 euros per square meter compared to 3,332 euros per square meter nationwide.
Thessaloniki and Patras Also Among Europe’s Least Affordable
The affordability crisis extends beyond Athens. Thessaloniki ranks in the top ten, requiring 11.4 years of salaries to purchase a newly built 70 square meter apartment. The average purchase cost stands at 2,815 euros per square meter, or nearly 200,000 euros, with prices 1.57 times higher than the national average.
Remarkably, Thessaloniki surpasses major cities in developed economies, including London (10.8 years of salaries), Milan (9.9 years), and Rome (8.1 years). Even Patras requires 8.1 years of salaries, exceeding Rome and cities such as Florence (7.7 years) and Manchester (5.3 years).
The case of Patras is particularly telling. While the average selling price of a newly built apartment does not exceed 1,457 euros per square meter – below the national average at just 81.3 percent – incomes have remained so low that even Patras ranks high on the affordability list.
Collapse in Purchasing Power Behind Housing Crisis
At the 2nd Real Estate Conference organized by the Association of Sociétés Anonymes and Entrepreneurship, experts identified two primary causes of the housing crisis: the collapse of construction activity and the dramatic decline in household purchasing power.
According to Giannis Delikanakis, founding partner of Southrock Asset Management, “The crisis brought a dramatic reduction in the disposable income of Greeks, which now stands at 68 percent of the corresponding income in 2010, while in Romania it is at 140 percent and in the Czech Republic at 130 percent. Therefore, people don’t have money, and the housing crisis is also a product of this development, as in the meantime the prices of buying and renting homes have increased because the cost of materials and land prices have risen.”
Construction Activity Remains Severely Depressed
Dr. Vyron Kotzamanis, Research Director at the Institute of Demographic Research and Studies (IDEM), noted that under normal circumstances, Greece would not be experiencing a housing crisis today, given that there are one million fewer young people aged 30 to 40 compared to 20 years ago. However, during the economic crisis, construction activity collapsed by 85-90 percent compared to the 2000s.
The problem persists as construction activity has not recovered sufficiently to boost supply. According to the Deloitte study, Greece ranks 19th out of 25 countries in new housing starts, with only 2.95 new homes per 1,000 inhabitants. This is despite private construction activity recording annual growth in 2024 of 14.9 percent in the number of building permits, 16.5 percent in surface area, and 8.7 percent in volume.
Legislative Gap Causes Construction Slowdown in 2025
This year has seen a decline due to the legislative vacuum created by the abolition of the Building Regulation Code (NOK) construction bonuses following a Council of State decision. During the first seven months of 2025, private construction activity recorded an annual decline of 10 percent in the number of permits, 18.4 percent in surface area, and 11.3 percent in volume.
Income Gap Explains Affordability Crisis
The research makes clear that the massive gap in housing affordability is primarily driven by stagnant household incomes in Greece. While housing prices have surged due to increased costs of materials, land prices, and limited supply, wages have failed to keep pace, creating an unprecedented affordability crisis that affects not only Athens but cities across the country.
The Deloitte study underscores that addressing Greece’s housing crisis will require a multifaceted approach including stimulating construction activity, implementing decentralization policies to reduce pressure on Athens, and most critically, addressing the structural issues that have kept household incomes depressed for more than a decade.
Source: https://www.neolaia.gr/2025/11/03/apagoreftikes-oi-times-katoikion-stin-athina/
