The numbers speak: What the data shows
According to the August 2025 Press Release from the Bank of Greece:
- The average interest rate on variable-rate mortgage loans was 3.55% for new loans.
- For existing loans with a duration of over 5 years, the interest rate remained almost unchanged at 3.61%.
- New loans up to 250,000 euros: 4.71%.
- Loans from 250,001 to 1 million euros: 4.21%.
- Loans over 1 million euros: 3.62%.
- The margin between loan and deposit interest rates remains high: 4.14 percentage points for new contracts, 4.34 percentage points for existing balances.
Why do we spend 1/3 of our income on housing?
The continuous increase in rents and the high cost of purchasing or borrowing push housing expenses above 35% of disposable income, well above the European average. The upward trend in rental prices is particularly intense in Athens and Thessaloniki, while even borrowers with low-interest rates see the burden increase.
Comparison with Europe
The average housing expenditure in the EU ranges between 22%–25%, while in Greece the percentage has been steadily rising since 2018, reaching today 35.5%, the highest rate in the Union.
The issue of housing remains central for Greek families. The data from the Bank of Greece confirms the ongoing increase in costs and the need for strategic actions both from households and the government. At Spitigkonzalez, we closely monitor developments and provide updates on the real estate market and housing economics.
