Rising interest rates and a slower pace of growth in apartment sales prices are paving the way for residential rents to stabilize in the first half of 2027, according to economists at Euro2day.gr.
Although with a lag, rents are following the trend in prices, where signs of a slowdown are already apparent, experts emphasize.
According to the latest data from the Bank of Greece, the apartment price index rose by 5.7% in the first quarter of the year, compared to an 8.3% increase in the previous quarter and a 7.5% increase in the first quarter of 2025.
For the remainder of 2026, the market is expected to follow a more stable trajectory. In fact, experts “anticipate” a further slowdown in the rate of price growth to around 3%, perhaps slightly lower.
“The picture we have, at the macroeconomic level, for rents is not very different from that of prices. We’re seeing a slowdown in price growth, and we expect something similar for rents. As restrictions on Airbnb come into effect and the number of homes available for long-term rentals increases, we are likely to see rents stabilize,” notes an economist who closely monitors the market.
Another factor shaping the housing market—and one closely linked to both property sales and rental prices—is GDP growth.
Here, too, the index is expected to grow at a more moderate pace. Specifically, according to the spring economic forecasts recently published by the European Commission, the country’s GDP is expected to slow from 2.1% in 2025 to 1.8% in 2026 and 1.6% in 2027 due to the shock in energy prices.
Rent trends
The May inflation data published a few days ago by ELSTAT painted a particularly bleak picture of housing costs.
In the housing services category, prices skyrocketed by 11.6%, while the Consumer Price Index (CPI) rose by 5.2%. Rent prices rose by 7.7%. Although this is extremely high, it is worth noting, however, that this represents a decrease from May 2025, when the corresponding increase stood at 10.9%.
The stability that the end of the war in the Middle East may bring to the economy could also contribute to a decline in demand for rental housing.
“As long as it’s unclear where the market is heading, most people will prefer to stay in rental housing. This may change once the market becomes more transparent and buyers gain a better understanding of price trends and whether or not a correction is on the horizon,” analysts add.