Sharp decline in homeownership in Greece over 20 years – Young people rent while boomers own their homes

In Greece, we usage 1 connection to symbolize the information and information of surviving successful a privately-owned home: keramidi (roof tile).

This symbolic word, combining extortion and sentiment, guided generations from post-war Greece done the precocious 20th century. The operation “to enactment a extortion implicit my head” became astir a nationalist obsession, turning homeownership into a taste fixation.

However, this profoundly ingrained inclination has not conscionable weakened successful caller years but is unraveling entirely. According to a Metron Analysis survey presented astatine the Hellenic Public Property Conference, homeownership successful Greece has plummeted to 61%.

This is simply a crisp change, particularly considering that successful 2005, the percent deed a historical precocious of 84.6%. Even during the harsh economical situation and bailout years (2011-2012), homeownership remained astatine 73%. The existent complaint places Greece beneath the European average, thing unprecedented.

Further probe highlights a generational gap. Over 75% of those aged 50 and older proceed to ain their homes, but lone 30% of young radical do. The remainder trust connected renting.

So, what’s happening? Are Greeks abandoning the thought of owning a “roof tile”? Are priorities shifting? Are they dismantling concepts erstwhile seen arsenic sacred, similar the household location they grew up in? Or is it simply that they can’t spend to bargain homes owed to fiscal constraints? The reply is neither elemental nor one-dimensional.

There’s regular reporting connected the fiscal struggles of young radical to unafraid the income indispensable for independence, a home, oregon starting a family. However, the inclination toward renting besides reflects a broader taste shift. People present worth mobility and are little tied to circumstantial places.

Generation Rent doesn’t conscionable rent due to the fact that they can’t bargain – they often similar it. Many young radical determination often to accommodate to life’s changing circumstances. “It’s present communal for young radical to power respective homes earlier settling into 1 they own,” explains Antonis Markopoulos, laminitis of the online existent property level Prosperty.

The displacement successful manner preferences drives flexibility. For example, idiosyncratic mightiness unrecorded downtown for 2 years, past determination to the bluish suburbs for 3 years, past relocate person to enactment oregon a partner. Criteria often person little to bash with rent costs than suitability for lifestyle.

Greeks progressively presumption homeownership arsenic thing to see aft starting a family, peculiarly aft having their archetypal child.

Attorney and President of the Panhellenic Federation of Property Owners, Stratos Paradias, adds different perspective: “The diminution successful homeownership is driven some by prime and necessity. Many people, adjacent if they ain property, take not to unrecorded successful it. Their owned spot mightiness not conscionable their abstraction needs, oregon it mightiness beryllium inconveniently located.”

This has led to a emergence successful “dual renting,” wherever owners rent retired their properties and usage the income to money renting elsewhere.

Real property prices person besides risen importantly successful caller years, explains Dimitris Melachroinos, CEO of spitogatos.gr. “Demand has remained precocious contempt the terms increases,” helium says.

Programs similar “My Home” boosted request successful 2023 and are expected to proceed influencing the marketplace successful 2024. They bespeak a beardown nationalist involvement successful homeownership opportunities, adjacent successful a challenging market.

Mortgage Loans

For galore years, the emblematic way for obtaining one’s ain “roof” (keramidi) was straightforward: a travel to the slope and a owe loan. In 2005, the highest twelvemonth of homeownership successful Greece, banks disbursed an astonishing €16.5 cardinal successful lodging loans. Just a decennary later, by 2015, lodging recognition had plummeted to €480 million. Estimates for 2024 suggest that banks volition disburse astir €1.4 cardinal for location purchases.

“Certainly, the fiscal situation and the precocious fig of non-performing loans severely impacted some the quality of banks to supply owe loans and the risks involved,” notes Mr. Melachroinos. “Today, banks person changed their approach. They are much consenting to lend but with much mature processes and hazard limits, protecting some the banking strategy and the borrowers.”

However, galore Greeks stay wary of mortgages. It’s nary coincidence that lone 20% of spot transactions impact owe loans, compared to 55% successful Italy, for example.

Mr. Paradias highlights that the portrayal of “red loans” (defaulted loans) comparative to wide spot ownership successful Greece is exaggerated. “Currently, the percent of owner-occupied homes purchased with loans that person defaulted does not transcend 6%-7% of full ownership. The conception that fractional oregon much Greek homes are purchased with unpaid loans and that non-performing loans are the superior contented for Greeks is utterly misleading.”

Ties to the Family Home

The statistic connected loans bash not align with the precocious request for properties. If they don’t mean to unrecorded successful them, wherefore are Greeks buying homes? “The Greek mindset regarding spot purchases has shifted from residential needs to concern purposes,” explains Mr. Markopoulos.

“More and much radical similar to put successful existent property alternatively of redeeming wealth successful banks, adjacent successful the signifier of fixed deposits. They judge it is simply a safer concern that tin output greater returns, adjacent successful the abbreviated term, compared to involvement oregon different concern options. High rents successful caller years person besides contributed to this shift. Government initiatives are heading successful the close absorption and are facilitating this trend.”

On a societal level, the contented of family-owned properties is besides worthy examining. Data shows that Greeks are processing overmuch looser affectional ties with the patriko (family home). According to Mr. Markopoulos, “Younger radical are much consenting to negociate the merchantability of household properties if they don’t conscionable their needs. In astir cases, the proceeds service arsenic a instauration for purchasing their ain homes.”

The Elusive Dream of a Vacation Home

Foreigners present predominate the purchaser pool, arsenic Greeks are incapable to spend abrogation homes and similar yearly holidays successful antithetic locations instead.

Vacation homes are a unsocial diagnostic of Greek society. A singular 32.6% of Greek families inactive ain a secondary spot that could service arsenic a abrogation home—an bonzer fig by European standards.

However, this inclination is shrinking for well-known reasons. “The marketplace for abrogation homes successful Greece present caters to precise fewer locals,” says Mr. Markopoulos. “Foreigners chiefly presumption specified properties arsenic investments, but successful caller years, they’ve besides been choosing places to settee permanently aft retirement.”

Does this mean Greeks are abandoning their household homes successful the village? “They are overmuch much unfastened to considering offers now,” helium notes. “If the location has been passed down to them, it often means the archetypal owners, parents oregon grandparents, are nary longer alive. This inheritance besides entails attraction costs.”

According to Mr. Markopoulos, “Youth mobility is simply a planetary phenomenon, and Greeks are pursuing suit. If their abrogation location is successful bully condition, they are present overmuch much apt to rent it retired short-term to money their holidays elsewhere.”

“Young radical contiguous conflict to get their archetypal home, fto unsocial acquisition a abrogation home—it’s a dream,” emphasizes Mr. Paradias. “Even maintaining existing abrogation properties is difficult. Keeping them successful a information suitable for a fewer days’ summertime enactment is simply a challenge. Some are forced to merchantability them, adjacent against their wishes, due to the fact that they can’t carnivore the fiscal burden.”

As for colony homes, the outlook is hardly bright. “If you locomotion done villages, you’ll spot that astir homes are bare and neglected. The countryside is becoming deserted, on with its houses. There needs to beryllium contiguous governmental enactment successful this area.”

The Hallway and the “Good Living Room” Have Disappeared

Children’s bedrooms person expanded to accommodate some sleeping and studying needs.

While homes are often referred to arsenic “real estate”—something fixed and unchanging—the layout of residences has evolved dramatically implicit the decades. In the 1950s and 1960s, the mean location had a dedicated reception area, a abstraction serving arsenic a eating country and surviving room, on with a smaller “good” surviving room—a near-sacred abstraction with sliding doors, opened lone for household celebrations oregon Sunday lunches. Deep wrong the location laic the bedrooms, bathroom, and kitchen.

Today’s homes are wholly different. The hallway and the “good surviving room” person vanished arsenic concepts, and families present utilize each spaces much practically.

Children’s Bedrooms

Children’s bedrooms person accrued successful size to accommodate not conscionable sleeping but besides studying and idiosyncratic comfort. The kitchen, erstwhile relegated to a humble country for repast preparation, has moved to a cardinal location, becoming a showcase for culinary skills. Bathrooms person besides multiplied, with a impermanent WC adjacent the surviving country present a must-have, and successful larger homes, the ratio of 1 bath per chamber has go common.

During the COVID-19 lockdown, Greeks reconnected with their homes. Forced to walk much clip indoors, adjacent moving from home, they gained a caller appreciation for their home’s strengths and weaknesses. Did this displacement their position connected lodging needs? “We spot much radical wanting to adhd an other country to their homes,” notes Mr. Paradias. “A country that tin service arsenic an bureau and connection immoderate privacy.”

According to information shared by Mr. Melachroinos, “In the post-pandemic period, for astir 18 months, determination was an summation successful searches for larger homes to bargain oregon rent. There was besides a noticeable inclination toward areas extracurricular municipality centers, provided they remained comparatively accessible. However, today, successful galore cases, we’ve reverted to pre-pandemic preferences.”

The Modern “Hearth”: The Sofa

Grandma’s lace doilies person been replaced with flat-screen TVs and modern décor.

For decades, the TV has been the favourite household instrumentality for Greeks. According to the Hellenic Statistical Authority (ELSTAT), 99.5% of households ain one. From black-and-white models to today’s 52-inch “frames” that tin treble arsenic creation galleries, the travel spans fractional a century.

The fig of screens successful homes has multiplied, arsenic person the purposes of the surviving room. It present serves aggregate needs, often including a workspace for distant enactment and a mini eating area. Yet, “the sofa remains the bosom of the home. In the 1970s, it was a button-tufted petrol blue, successful the 1980s, a achromatic leather one, and since 2000, a sleek achromatic linen sofa,” explains starring decorator Vangelis Bonios, describing the improvement of this cardinal portion of furniture.

Though trends travel and go, the mode Greeks comprehend their homes remains consistent: “The Greek location is similar an affectional container. It holds elements that link the proprietor to memories, tradition, oregon household history, alongside objects collected from travels and idiosyncratic treasures. After all, grandma’s lace doily, adorning adjacent the astir mismatched items, was a mode to merge the past with modernity,” says Mr. Bonios.

New Boundaries

The lace doilies person disappeared implicit the decades, arsenic has the favoritism betwixt ceremonial and informal spaces wrong the home. Locked-away surviving rooms person opened up, and the boundaries betwixt rooms person dissolved. One of the astir important changes successful caller decades has been the removal of walls betwixt the room and the surviving room. The cooking country has go unfastened and visible, turning repast mentation into a communal experience.

“This rigidity that characterized homes 2 generations agone nary longer exists. Younger radical person much state of question and incorporated their idiosyncratic style—they are little conservative. In the past, societal norms dictated having a ceremonial eating array with chairs, a show cabinet, good china for peculiar occasions, and a ‘proper’ surviving room. Now, young radical travel their instincts, creating much absorbing spaces,” states award-winning interior decorator and laminitis of ID Laboratorium, Stamos Chondrodimos.

The “natural Greek light” plays a starring relation successful each areas of a home, notes Mr. Bonios. Perhaps this is the inspiration for the anticipated displacement toward authenticity successful Greek location décor. “Beyond shapes and styles, the aboriginal volition explicit the uniqueness of each homeowner. It volition bespeak their property and what they genuinely love.”