Demand key to construction in 2023

An unpredictable year has begun for the real estate market, as countervailing forces from the supply and demand side collide.

Will the interest rate hike and the steep rise in the prices of building materials slow down construction? Or will the upward trend continue due to demand for property from abroad or from Greek depositors who will see the value of their savings gnawed away by high inflation?

Construction costs, which remained essentially stable from 2015 to 2020, have already increased by more than 20%, while the price rally has not stopped. Interest rates were also fixed until mid-2022. However, within the first quarter of 2023 there are two new hikes expected that will bring the cost of mortgages even above the 5% level, for both fixed or floating rates.

If building a square meter of housing now requires more than 1,500 euros - which means that...