Q2 housing prices up, pointing to moderate recovery

Q2 housing prices up, pointing to moderate recovery

Housing prices rose again in the second quarter of the year, indicating that the market is in a moderate recovery phase, according to data released from the Bank of Greece Thursday.

Figures show that apartment prices grew 0.8 percent in the second quarter, adding to a rise of 0.1 percent in the January to March period.

The increase is boosting hopes that Greece's recovering economy will rub off on real estate prices that fell some 42 percent in the last eight years during the country's severe economic crisis. Experts warn, however, that there needs to be a rise in disposable income levels and a substantial drop in high unemployment, for the broader property market to get back in shape.

The data shows that prices in Athens outperformed the country, adding 1,2 percent in the second quarter while in Thessaloniki they firmed 0.2 percent.

Buyers pushed the prices of newer homes (less than five years old) up 0.9 percent while the prices of older apartments added 0.7 percent, data showed.