Greece’s Mortgage Market Sees Significant Improvement
Greece has made significant strides in its mortgage market, ranking among the five cheapest countries in the euro area for mortgage borrowing as of November 2025. This achievement comes as lending rates continue to decline, with mortgage credit growth turning positive for the first time since October 2010.
Current Mortgage Rates in the Euro Area
According to the latest data from the European Central Bank (ECB), Greece recorded an average mortgage interest rate of 3.04% for loans with fixed rates of up to five years. This rate is well below the euro-area average of 3.35%, placing Greece fifth among the most affordable mortgage markets in the single-currency bloc.
Comparison with Other Euro-Area Countries
The shift underscores rapid progress in 2025, with Greece starting the year in ninth place in the euro-area rankings, with mortgage rates at 3.44%, but climbing to fifth by November. Since October 2023, when rates peaked at 4.04% after the ECB’s last hike, borrowing costs have fallen by a full percentage point.
Mortgage Lending Returns to Positive Growth
November 2025 marked a historic turning point, with mortgage lending returning to positive growth for the first time in 15 years. Data from the Bank of Greece show that the annual growth rate of outstanding mortgage loans reached 0.4% in November 2025, the first positive reading since October 2010.
Ranking of Mortgage Markets in the Euro Area
The ranking of the cheapest and most expensive mortgage markets in the euro area as of November 2025 is as follows:
- Cheapest Mortgage Markets:
- Malta: 1.79%
- Portugal: 2.73%
- Croatia: 2.75%
- Cyprus: 2.85%
- Greece: 3.04%
- Most Expensive Mortgage Markets:
- Latvia: 8.68%
- Estonia: 7.04%
- Lithuania: 4.74%
- Netherlands: 3.70%
- Germany and Belgium: 3.56%
Mortgage Rates Across the Euro Area
Average mortgage rates for fixed terms of up to five years in other euro-area countries stood at 3.46% in Ireland, 3.41% in Slovakia, 3.29% in Italy, 3.27% in Luxembourg, 3.26% in Austria, 3.22% in France, 3.21% in Slovenia, 3.18% in Spain, and 3.13% in Finland.
Conclusion
The significant improvement in Greece’s mortgage market, with declining lending rates and a return to positive mortgage credit growth, marks a crucial step towards recovery from the legacy of the fiscal crisis. As the country continues to make progress, it is likely to attract more investment and support its economic growth. The data highlights the importance of monitoring mortgage rates and their impact on the overall economy, providing valuable insights for policymakers, investors, and individuals looking to navigate the mortgage market in Greece and the broader euro area.
