Greece has more than 2.2 million vacant homes, accounting for 34.5% of the country’s total housing stock—one of the highest rates in Europe, according to a study by the Parliamentary Budget Office based on data from the 2021 ELSTAT census.
The study’s authors note that the problem in the Greek housing market is linked not only to a lack of new construction but also to the low utilization rate of existing housing stock. While the total number of residential properties increased by 3.5% between 2011 and 2021, the number of homes available for long-term rent decreased by 10.4%, and those listed for sale fell by 33.1%. The number of inactive vacant properties—those not offered for either rent or sale—rose to 1.81 million.
The category of vacant housing includes not only potential properties for purchase or rent, but also second homes, summer cottages, older housing stock, properties in rural areas and on islands, as well as real estate taken off the market due to legal, inheritance, or technical issues. Among the reasons why housing does not return to the market, the study cites inheritance disputes, unclear ownership status, legal complications, high renovation costs, low energy efficiency, and limited demand in certain regions.
For investors, this market structure creates opportunities primarily in the segments of older housing stock, redevelopment, and renovation. Properties that remain vacant due to owners’ reluctance to invest in modernization may enter the market at a discount; however, their investment appeal depends on the total cost after renovation and the potential market price upon sale or long-term lease.
Government support for renovation could be an additional factor. Greece is preparing a housing modernization program worth approximately 500 million euros, which is intended to help return some of the vacant properties to the housing market. According to Greek media reports, the program provides subsidies for repairs and energy efficiency, and eligibility checks are to be conducted via the gov.gr platform.
At the same time, investors should factor in the risk of price adjustments. According to the study’s authors, if the share of vacant and inactive housing returns to 2001 levels within approximately six years, real housing prices in Greece could fall by 15.5–24.6%. This does not imply an automatic collapse of the entire market; however, overvalued properties and locations with limited demand may prove to be the most vulnerable.
The Greek real estate market continues to appreciate for now, but the pace of growth is slowing. According to the Bank of Greece, apartment prices rose by 5.7% year-over-year in the first quarter of 2026, following increases of 8.1% in 2025 and 9.1% in 2024. In Athens, growth in the first quarter was 5.2%, and in Thessaloniki, 6.4%.
Relying solely on short-term rentals and the Golden Visa program as the sole rationale for a transaction remains a risk. Research indicates that the impact of short-term rentals on the market as a whole may be limited; however, in central areas of Athens and Thessaloniki, as well as popular tourist destinations, they are increasing pressure on the long-term housing market. Therefore, a high-quality asset is not a property purchased solely for a residence permit or Airbnb purposes, but rather a property with a clear legal history, an estimated renovation cost, and sustained demand once it is brought to market.
According to Experts.news, the gap between what buyers most often want to purchase and what sellers are offering is widening in the Ukrainian housing market, as noted in the NBU’s June Financial Stability Report.
According to the regulator, the average size of a purchased apartment remains at 48 square meters, and that of a house at about 70 square meters. At the same time, the supply continues to be dominated by more spacious apartments: their average size exceeds 65 square meters.
The discrepancy is also evident in the age of the properties. Buyers more often choose older and, consequently, more affordable apartments. In Kyiv, the median age of purchased apartments has risen to 33 years, and in the western regions, to 39 years. In real estate listings, by contrast, nearly two-thirds of apartments are offered in buildings constructed less than 15 years ago.
The NBU notes that such discrepancies between supply and demand are holding back market activity. Buyers are more interested in smaller and cheaper housing, while sellers and developers more often offer newer and more spacious properties.
This trend is also significant for developers. In the western regions and the suburbs of Kyiv, budget-friendly projects are more common, while business-class projects predominate in the capital. However, demand during wartime indicates that the average buyer is more often looking for a compact and more affordable option.
In the second half of 2025, residential construction picked up: in most regions, the planned floor area of apartment buildings where construction had begun increased significantly. Across Ukraine as a whole, this figure rose by one and a half times over the year, and in Kyiv—by more than double.
However, the NBU notes that developers continue to finance the completion of existing complexes and new projects largely with their own funds. Banks are reluctant to lend to the construction sector due to high risks.
The main takeaway for the market: further recovery in sales will depend not only on household income but also on how closely supply aligns with actual demand—in terms of square footage, price, age of the property, and level of risk for the buyer.
According to Experts.new, following a period of relative calm, housing prices in Ukraine have begun to rise again, as stated in the National Bank of Ukraine’s June Financial Stability Report.
According to the NBU, housing prices have risen over the past six months. In the primary market, advertised prices increased roughly in proportion to the hryvnia’s devaluation, as real estate prices in Ukraine are traditionally quoted in U.S. dollars. In the secondary market, the increase was faster—5–10 percentage points higher than the devaluation.
An additional factor was the sharp rise in the cost of construction due to a surge in fuel prices. This intensified upward pressure on prices for new construction and limited developers’ ability to keep prices at previous levels.
At the same time, the NBU notes that housing prices remain historically low relative to household incomes. In the first quarter of 2026, the housing price-to-income ratio stood at 8.7x for the primary market and 8.6x for the secondary market.
The situation is different in the rental market. Due to winter attacks on energy infrastructure and the associated risks, the growth in rental rates has slowed. In Kyiv, the south, and the center of the country, rental costs have remained virtually unchanged since last fall. Price increases continued mainly in the western regions.
The price-to-rent ratio for secondary housing rose slightly in the first quarter to 10.4x, but still did not exceed the long-term average.
For buyers, this means that housing remains relatively affordable by historical standards, but uncertainty, security concerns, and the state of the energy infrastructure continue to limit demand. For investors, the situation is less clear-cut: rising purchase prices coupled with nearly stable rents reduce the short-term appeal of buying housing for rental purposes, especially in Kyiv and the central regions.
In the medium term, market dynamics will depend on the hryvnia exchange rate, the cost of construction, security, the state of the energy sector, and the resumption of mortgage lending.
HOUSING, NBU, PRICE, REAL ESTATE, rent
In the first quarter of 2026, the real estate market in neighboring Bulgaria faced a sharp disconnect between rising prices and actual buyer activity: housing prices continue to rise at double-digit rates, but the number of transactions is declining significantly, according to the National Institute of Statistics of Bulgaria.
According to statistics, residential real estate prices in Bulgaria rose by 14.8% year-over-year in the first quarter. In the first three months of the year alone, the national average price increased by another 6.2%. At the same time, the number of transactions involving new and existing homes fell by 18.5% year-over-year and by nearly 20% compared to the previous quarter.
This disparity points to a phase of price overheating: sellers continue to set high price expectations, while buyers are increasingly postponing transactions. The market is influenced by a combination of several factors—expectations following Bulgaria’s transition to the euro, low mortgage rates, rising construction costs, and limited high-quality supply in major cities and along the coast.
Burgas led the price increases, with prices rising 17.7% year-over-year and 5.9% quarter-over-quarter. At the same time, this very market saw one of the sharpest declines in activity: the number of transactions fell by 30.5% year-over-year. This means that demand along the coast has become significantly more price-sensitive.
In Sofia, housing prices rose by 16% year-over-year and by 5.8% quarter-over-quarter. Average prices in the capital settled in the range of 1.8–2.6 thousand euros per square meter. At the same time, the volume of transactions in Sofia fell by 19.2%, and the market’s total transaction value decreased by 7%.
Varna also remained in the double-digit price growth range: housing prices rose by 13.2% year-over-year, but the number of transactions fell by 27.6%. In Stara Zagora, annual price growth stood at 12.7%, though the number of transactions fell by 25%. On a quarterly basis, housing prices in Stara Zagora declined by 2.1%.
Plovdiv appears to be the most stable among the major markets. Prices there rose by 8.8% over the year, while the number of transactions fell by only 0.6%. In monetary terms, the Plovdiv market even grew by 2.4%, making it the most balanced among Bulgaria’s major cities.
For investors, the situation is becoming more challenging. Rapid price growth amid a decline in the number of transactions means that market liquidity is deteriorating: a property may be gaining value on paper, but selling it at the desired price is becoming more difficult. This is especially true for locations where prices have risen faster than household incomes and rental yields.
For a long time, the Bulgarian housing market was supported by relatively affordable mortgages, an influx of foreign buyers, interest in resort real estate, and expectations related to the country’s accession to the eurozone. However, current statistics show that purchasing power is already approaching its limit.
According to The Serbian Economist, Albania’s Ministry of Finance has submitted a draft bill for public discussion that would increase property taxes and revise the system of tax breaks for homeowners.
Under the proposal, the tax on residential real estate could rise from the current 0.05% of the property’s value to 0.1–0.2%. Higher rates are also proposed for commercial properties, with the total tax burden depending on the property category and its intended use.
One of the key changes concerns owners of second and subsequent properties. If the property is not their primary residence, tax exemptions will not apply. Thus, owners of vacation homes, investment apartments, and additional housing will have to pay the full rate.
In effect, the government is attempting to distinguish between social housing and investment real estate. For families who own only one apartment, the tax increase may be partially offset. For owners of multiple properties, the tax burden will rise more significantly.
The reform is particularly important for Albania’s real estate market, where housing prices have risen rapidly in recent years in Tirana, Durres, Vlora, Saranda, and other locations linked to tourism and investment demand. Amid active construction, interest from foreign buyers, and the growth of short-term rentals, the government is seeking to increase local budget revenues and align property taxation more closely with the market value of assets.
Albania is gradually transitioning from the old model of fixed or low taxes to a more modern system where the tax base is tied to the property’s value. This approach is in line with the recommendations of international financial organizations, but it could prove painful for property owners, especially if the cadastral and market valuations of residential properties are revised upward.
For foreign investors, these changes mean that the annual cost of maintaining a second home on the coast or an investment property in Tirana will become somewhat more expensive. That said, even after the increase, the tax burden in Albania will remain relatively moderate compared to many EU countries.
The key question for the market is how exactly the authorities will assess property values and how quickly the new system will be implemented in practice.
The Albanian real estate market remains one of the most dynamic in the Balkans. Growth in tourism, the development of coastal cities, and interest from foreigners are sustaining demand; however, the tax increase could gradually cool speculative purchases and widen the gap between residential housing and investment real estate.
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Rising housing and rent prices in Europe are increasingly limiting people’s access to adequate housing and increasing the risk of homelessness, according to the European Union Agency for Fundamental Rights (FRA)’s annual report, Fundamental Rights Report: Challenges and Achievements in 2025.
According to the FRA, between 2015 and 2024, home prices in the EU rose by an average of 53%, while rents increased by nearly 17%. The agency notes that the housing crisis is becoming not only an economic issue but also a human rights issue, as the right to adequate housing is becoming increasingly inaccessible to vulnerable groups.
“Rising costs are affecting many people and families, as more and more people cannot afford housing and are at risk of becoming homeless,” said FRA Director Sirpa Rautio.
According to an estimate by the European Federation of National Organizations Working with the Homeless (FEANTSA), cited by the FRA, there were nearly 1.3 million homeless people in the EU in 2025. The agency identifies young people, private-market renters, low-income families, migrants, refugees, and people already on the brink of social exclusion as particularly vulnerable.
The FRA notes that more than two-thirds of EU residents own their homes, yet among those with incomes below the at-risk-of-poverty threshold, fewer than half are homeowners. This exacerbates inequality: rising housing prices increase the wealth of property owners but worsen the situation for renters and those without access to mortgages.
The report covers all 27 EU countries, as well as three candidate countries or countries potentially linked to the European integration process—Serbia, Albania, and North Macedonia.
The housing crisis is becoming one of the key social challenges for Europe. Rising housing prices are already affecting not only the real estate market, but also demographics, labor mobility, social stability, and trust in public institutions.
