The Foundation for Economic & Industrial Research (IOBE), in collaboration with CEPAL, present the third issue of the Quarterly Bulletin on private debt in the Greek economy, continuing the systematic monitoring of developments in private debt in Greece and its interaction with the broader macroeconomic and financial environment, while simultaneously taking into account developments in the real estate market. This issue includes a special analysis of housing supply in Athens and Thessaloniki, making use of data and analyses provided by ReDataset.
In the international economic environment, the war in the Middle East contributed to increased volatility in energy prices and a resurgence of inflationary pressures in 2026. Despite the international challenges, the Greek economy recorded a positive annual growth rate of 1.9% in the second quarter of 2026, compared with 1% in the Eurozone, with growth supported by fixed investment, private consumption, and exports. Fiscal performance and investment activity remained strong, while persistent high inflation, negative household savings, weak growth in disposable income, and the current account deficit continue to pose challenges.
Activity in the real estate market maintained its momentum at the beginning of 2026. Construction activity increased by 16.9% year-on-year in the first quarter, while inflation in the cost of materials accelerated. Housing prices continued their upward course, recording an annual increase of 5.8% at the national level, with Thessaloniki showing a stronger upward trend compared with Athens.
Newly built homes with one bedroom recorded the largest annual increases in asking sale prices. At the same time, new mortgage loan disbursements more than doubled compared with a year earlier, reaching €1.14 billion in the second quarter of 2026, while the rate of completed auctions declined during the first half of the year.
Private debt increased in the first quarter of 2026, with this increase stemming mainly from financial expansion, which is generally positive and consistent with the recovery in investment, and secondarily from the further accumulation of overdue debts to the State. Total private debt amounted to €420.9 billion. (169% of GDP), €22.1 billion. higher compared with a year earlier.
Overdue debts amounted to €238.6 billion, however their share in total private debt declined further to 56.7%. Debts to the State continue to constitute the largest part of overdue liabilities, representing almost 70% of the total. The total amount of loans increased to €254.6 billion, with business loans contributing the largest part of the annual increase.
At the same time, the percentage of non-performing loans held by banks and servicing companies declined to 28.4%, with servicing companies continuing to manage more than 90% of the total stock of non-performing loans.
The special topic of the third issue examines the profile of housing supply in Athens and Thessaloniki during the period 2025–2026. Housing listings for sale increased by approximately 15%–26% in the areas examined; however, this increase was accompanied by fewer transactions and longer periods of time that properties remained on the market.
The composition of supply differs significantly among the individual areas: newly built properties represent a noticeably larger share in the Southern and Northern Suburbs of Athens, while in the Center of Athens and in Piraeus the increase in supply comes mainly from older homes returning to the market. These developments highlight the importance of examining not only the overall increase in housing supply, but also its geographical distribution, the age of the housing stock, and its ability to respond to changing demand conditions.
To ease pressures in the housing market, housing policy is considered advisable to focus on the further strengthening of supply, in a way that responds more effectively to the changing conditions and needs of demand.
*See the report in detail on the right in the Accompanying Material column.