Bank of Greece and ELSTAT figures released between 25 September and 1 October 2026 point the same way. Mortgage rates are edging down and building permits are rising, but household borrowing is flat. Price growth has already slowed to 5.5%.
Three releases matter here. The Bank of Greece published August credit data on 25 September and August bank interest rates on 1 October. ELSTAT published June building activity on 28 September. Read alongside the second-quarter price index from mid-September, they give a current picture of the Greek housing cycle.
The numbers
| Indicator | Latest | Previous | Source |
|---|---|---|---|
| New floating-rate mortgage rate | 3.39% (August 2026) | 3.53% (July 2026) | Bank of Greece |
| Rate on outstanding mortgages over 5 years | 3.74% (August) | nearly unchanged | Bank of Greece |
| Average rate on all new loans | 4.79% (August) | 4.49% (July) | Bank of Greece |
| Household credit, annual growth | 2.4% (August) | 2.5% (July) | Bank of Greece |
| Household credit, monthly net flow | -€10 million (August) | +€41 million (July) | Bank of Greece |
| Private-sector credit, annual growth | 7.1% (August) | 6.8% (July) | Bank of Greece |
| Building permits | 3,118 (June 2026), +21.5% year on year | 31,707 in 12 months to June, +10.1% | ELSTAT |
| Apartment prices, annual change | 5.5% (Q2 2026) | 8.3% (2025 average) | Bank of Greece |
Sources: Bank of Greece, ELSTAT.
What is driving it
Mortgage rates are easing, other loans are not
The floating rate on new housing loans fell 14 basis points in August to 3.39%, according to the Bank of Greece. At the same time, the average rate on all new loans rose from 4.49% to 4.79%, while several business loan rates also rose. The spread between new loan and deposit rates widened to 4.42 percentage points from 4.30.
For mortgage borrowers, the direction is mildly helpful. The rate on existing mortgages with more than five years left stayed at about 3.74%.
Savers, meanwhile, are earning less. The rate on new household term deposits of up to one year fell to 1.17% from 1.24%. Low returns on cash are part of the backdrop for local savers weighing whether to buy property.
Households are not borrowing more
Credit to individuals and non-profit institutions, the Bank of Greece category that covers household borrowing, shrank by a net €10 million in August, after a €41 million rise in July. Annual growth slipped to 2.4%. The reported Bank of Greece figures did not include a separate figure for mortgages.
Business credit is doing the heavy lifting. It grew 9.4% year on year, and private-sector credit overall grew 7.1%. Private-sector deposits rose by €2.965 billion in the month, a 9.3% annual increase. Household deposits rose by €585 million.
Supply is picking up
ELSTAT counted 3,118 building permits in June 2026, covering 727,203 m². Private permits alone rose 21.8% on June 2025. Over the 12 months to June, building volume rose 19.6%, faster than the 10.1% rise in the number of permits.
Prices are slowing from a high level
The Bank of Greece index showed apartment prices up 5.5% year on year in the second quarter. Growth was 9.1% in 2024 and 8.3% in 2025. New apartments rose 6.2% and older ones 5.0%. By region, Athens rose 5.0%, Thessaloniki 4.7% and areas outside the main cities 7.1%.
What it means for buyers
Price growth in Greece is now well below its 2024 pace on the Bank of Greece measure: 5.5% against 9.1%. That still means prices are rising, just more slowly.
Buyers who do not borrow from Greek banks are less exposed to local mortgage rates. Those rates still matter indirectly, through the local buyers competing for the same homes. Flat household credit suggests that domestic financed demand is not accelerating, at least up to August.
Rising permits are an early indicator. Permits issued in mid-2026 will take time to become finished homes, so their effect on prices is unlikely to be visible soon.
Our view
The data describes a market that is cooling slowly rather than turning. Mortgage costs are drifting lower, but households are not borrowing more, which is consistent with slower price growth. Permit growth points to more supply in the coming years. The test will come in early 2027, when the €2 billion “My Home 3” loan scheme is due to start and could lift financed demand again.
Buyers should confirm how this applies to them with a Greek lawyer or accountant.
