Real estate: Prices are on fire in Attica and Thessaloniki - 2024-04-14 14:31:34

The RE/MAX Hellas real estate network records a significant increase in real estate sales prices for 2023, with the average increase being 12% for all property categories regardless of year of construction.

The rise in prices is largely due to increased demand, the gradually improved purchasing power of the Greek consumer after the end of the memorandums and the health crisis of the corona virus, the search for better and better quality housing, but also to the fact that the Greek still trusts property as the safest investment.

The real estate market in Greece continues to be one of the main pillars of the economy and after a period of economic instability and recession, the real estate market in Greece is recovering.

The return to economic stability and positive growth rates, combined with the increase in tourism and the attraction of foreign investors to the country, have given a strong impetus to the market, significantly contributing to the increase in interest in real estate, dragging prices along.

According to the official data collected from sales carried out in 2023 through RE/MAX Greece, the largest real estate network in the country for 22 years with 81 offices and over 1,100 real estate consultants throughout the territory, the resulting increase in sales prices of newly built properties up to 5 years old is 11% and 13% in properties from 5 years and older compared to the previous year.

Indicative of the upward trajectory of the real estate market is the fact that RE/MAX Greece in 2023 showed a total increase in sales by 26.14% and transactions (transactions) by 14.24%.

Greece, as a popular tourist destination, world-renowned for its wealth of natural beauty and cultural heritage, attracts millions of visitors every year, making the real estate sector particularly attractive for real estate investment with the purpose of purchasing a retirement home, buying a holiday home or for investment reasons.

However, what is worth highlighting is that the largest volume of real estate buyers come from Greece, while foreigners are not limited to buying real estate in touristic places or in Athens and Thessaloniki, but have expanded their interest to other areas that did not present until recently strong demand. This element proves that Greek Real Estate is a key “player” in the global real estate market and competes well with traditional markets such as Spain, Portugal and Italy in terms of the interest of foreign buyers.

The prices

In the prefecture of Attica an increase in the prices of newly built properties up to 5 years old was recorded by an average of 10.6%, in used properties over 5 years old the increase reached an average of 13.1%.

In particular, in the center of Athens, for newly built properties up to 5 years old, an increase of 4.9% was observed, setting the average selling price at 3,439 euros per sq.m. The upward trend was a result of the increase in prices in all areas of the center, with the biggest changes occurring in the area of Ampelokipi and Zografou. At the same time, a significant increase of 9.9% was recorded in properties aged 5 years and over, with the average sale price standing at 2,299 euros per square meter.

According to the completed sales of the RE/MAX Hellas network in Athens, the Zografou and Hilton areas recorded the largest price change per sq.m. in properties older than 5 years.

In the area of Northern Suburbs, both new-build and second-hand properties show even greater increases compared to 2022. Specifically, an average increase of 7.6% is recorded for new-builds and 11.4% for second-hand properties. This resulted in the average prices being 4,255 euros and 2,828 euros respectively.

High values are also recorded in South Suburb noting very significant increases in new builds averaging 15.8%. Specifically, the biggest increase per sq.m. presented by the regions of Vari, Glyfada and Hellinikon. In used cars, the increase was an average of 17.2%. The biggest increases in sales prices were observed in the areas of Vari, Voula and Elliniko.

Sta Western suburbs, the average price per sq.m. in second-hand properties it increased by an average of 20.1%, with the largest increase observed in Heraklion and Nea Ionia, and the average price per sq.m. to be formed at 1,561 euros. In new buildings, the average price per square meter reaches 2,675 euros, i.e. 17.3% higher than in 2022.

To Piraeus and in the neighboring areas, the average price for newly built properties was 3,303 euros per sq.m., while for older properties 2,490 euros, marking an increase of 9.8% and 9.9% respectively.

In the Rest of Attica, newly built properties saw an increase of 7.4% on average with the average price being 2,900 euros per sq.m. and in second-hand 12.7% with the average price amounting to 1,850 euros per square meter.

Based on all the above, in all the regions of the prefecture of Attica, the prices of second-hand properties had a greater increase in relation to the price increase of new buildings, compared to 2022.

Thessaloniki

In the Prefecture of Thessaloniki, the average sale price of newly built properties amounts to 2,449 euros per sq.m. showing an increase of 9.6% and in older properties at 1,690 euros per sq.m., i.e. 12.6% higher. With the exception of the eastern side of the city, in all other areas the biggest increases were in properties aged 5 years and older.

In more detail, at centre of Thessaloniki, in second-hand properties the average sale price increased by 11.7% to reach 2,528 euros per square meter. It is noteworthy that the biggest increases were observed mainly in the historical center of the city and in the area of Faliro. An increase of 9% was recorded in new buildings, with the average sale price being 3,522 euros per square meter. In addition, corresponding differences in prices were observed in the North and West side of the city.

Sta West, an average increase of 14.2% was recorded in properties older than 5 years, with the largest price increases observed in the area of Stavroupoli and Oreokastro. In new buildings the average increase was 7.1% compared to 2022.
In the East, the average sale price of newly built properties reached 2,556 euros, with the biggest increases – close to 20% – observed in the Panorama area. In older properties, the average price was 1,636 euros, i.e. 10.9% higher than the previous year.

In the rest of Greece, equally significant increases were observed in both newly built and second-hand properties. In particular, the average price per square meter for properties up to 5 years old was 2,561 euros and for second-hand properties at 1,635 euros, i.e. 13% and 13.5% respectively.