Authors: Prodromos Vlamis, Nicholas Chatzitsolis

Title: The Greek Housing Market as an Idiosyncratic Case: Analysis of the Socioeconomic Factors that Contributed to the Boom and Bust

Abstract

Greek housing market may be characterized as imperfect and opaque. This is due to limited transparency in respect of house transaction prices, extensive land fragmentation, complex planning legislation, strong owner occupier sector, as well as the extensive use of “counter performance” process in the housing development field. The aim of this paper is to present a review of the recent developments in the Greek residential market and identify the possible links with all its “peculiarities”. Considerations under assessment include socioeconomic factors such as the ill based concept, that every family must own at least one residential unit for “security” purposes, the extensive land fragmentation in Greece, the trend to concentrate residential development in virtually two cities (Athens and Thessaloniki) and the “unique” -by global standards- development process known as “counter performance”. We expect our analysis of the Greek residential market to be useful for industry professionals, policy-makers and real estate investors alike.