The Impact of the Program “Spiti Mou 2” on Real Estate Prices in Thessaloniki

The government’s “SPITI MOU 2” policy has been a significant turning point in the Greek real estate market, especially in major cities like Thessaloniki. The initiative, which the Ministry of National Economy and Finance started, offers advantageous financing terms to assist young people in purchasing their first property. However, the program has brought about significant changes in the real estate market, especially in pricing policy, in addition to providing opportunities for buyers.

What is the program about?

With a maximum loan amount of €190,000, “Spiti Mou 2” provides discounted mortgage loans up to 90% of the property’s value. The primary prerequisites for qualifying properties are:

• A living space of up to 150 square meters;
• Construction must be finished by December 31, 2007; and
• The property must be prepared for sale and occupancy.

The program’s social focus—assisting Greek youngsters and families in obtaining their first home—is highlighted by the fact that it is only available to locals.

A Sharp Rise in Prices — A Predictable Outcome

In actuality, the introduction of “Spiti Mou 2” has caused a discernible change in Thessaloniki’s market dynamics. Our observations show that the average cost of flats that fit the program’s requirements has gone up by about 20%. Considering that the Greek real estate market was already seeing a renaissance, this is a noteworthy increase.

The western areas of Thessaloniki, where real estate values first matched the program’s boundaries, have been most affected. Among these are Kordelio, Neapoli, Ampelokipi, Polichni, Evosmos, Ilioupoli, Stavroupoli, and Nikopoli. In order to maximize their profit and find the “golden ratio” that appeals to qualified consumers, sellers in these locations are constantly modifying their prices.

Seller Behavior

Due to state assistance, the market responded immediately to the flood of new purchasers who might have significant purchasing power. To sell their properties as soon as possible to qualified purchasers, many owners started offering properties close to the program’s maximum loan limit of €190,000. In some market segments, this conduct has resulted in temporary “overheating” and increased pressure on prices.

What Does This Mean for Buyers?

The program is still a great way for prospective purchasers, particularly young families, to acquire a house. However, there is now more competition for good houses, and sellers are less open to haggling. To prevent overpaying, it’s also critical to carefully consider a property’s true condition and market value.

Forecasts and Long-term Effects

If present patterns continue, we may anticipate:

• More price hikes in regions with high demand;
• A reduction in the number of appropriate homes available as program-eligible listings decline.

Thessaloniki’s real estate market has benefited greatly from “Spiti Mou 2,” particularly in the city’s western region. It has already raised prices despite its social goal. Sellers should take advantage of the chance for lucrative sales, while buyers should move quickly but carefully. In any event, the program is already changing the supply and demand structure in the city, so its effects are not likely to be temporary.

Anastasios Bozidis,

Head of sales department of Ellas Estate DS Group