Real estate prices are expected to reach new highs this year and also in 2025. Brokers, analysts and banks estimate that there will be a milder rise than the “explosion” of previous years.
Main factors that strengthen the demand are the interest from abroad for the Golden Visa, the increased demand of households for owner-occupied housing as well as the investment role that housing has now acquired.
Prospective homebuyers are being asked to dig deeper into their pockets as further increases in materials and labor translate into home buying costs.
The properties
Mple Kedros, which maintains the Cocomat hotel chain, reports how “with expectations for the Greek real estate market remaining positive and with tourism, infrastructure improvement and the gradual renewal of the building stock as driving forces, it is estimated that the upward trend in prices will continue”.
“It also states that “the dynamics of the residential real estate market in 2023 and the first months of 2024 are reflected in both the Golden Visa data and other relevant indicators. In particular, in the 1st quarter of 2024 net foreign direct investments in Greece (data from the Bank of Greece) for the real estate market recorded a positive annual rate of change (4.6%) and amounted to 520 million euros, compared to 497 million euros in corresponding period of 2023.
Residential construction activity (ELSTAT data) continued to increase significantly in the period January-February 2024, registering an annual increase of 47.3% in terms of constructable volume and 60.9% in terms of the number of permits.
On the other hand, the Bank of Greece (BoG) sees a continuation of the rise in real estate prices. In the report on Monetary Policy, the BoE mentions how with expectations for the Greek real estate market remaining positive and with tourism, the improvement of infrastructure and the gradual renewal of the building stock as driving forces, it is estimated that the upward trend in prices will continue.
Even if the scenarios for a slowdown in the growth rate are confirmed in the coming quarters, the upward cycle, according to all analysts, will continue mainly due to the demand-supply imbalance.
The 5 most expensive areas
Today’s high property market prices are a huge distance from those of 2017 and the first quarter of the year confirms that 2024 has come to grow it. In popular areas of Attica, prices are already more than double.
The South Suburbs of Athens, the Cycladesthe North Suburb of Athens, Lefkada and the Piraeus are the 5 most expensive areas of the country to buy a home in the third quarter of 2024.
The big winners
Revealing are the data of the SPI price index of Spitogatos according to which the Southern Suburbs are emerging as the real estate market’s big winners of recent years as they continue to attract mainly the interest of foreign investors.
The great increase in investment interest that exists for the Southern Suburbs and which is fueled by the ongoing Elliniko project has pushed sales prices in the Southern Suburbs above 3,800 euros in the first quarter of the year.
These increases are mainly noted in Elliniko, Alimos, P. Faliro, Glyfada and Voula.
Piraeus is going through a new eraas the extension of the Metro has brought a significant upgrade to the area. In Piraeus, the average asking price is 2,556 euros per sq.m. In the center of Piraeus, prices increased by 36%, while in the area of Tambouria – Agia Sofia a rise of 33.8% was recorded. They are followed by Drapetsona with an increase of 31.6%, Anthousa with 29.7% and Agios Ioannis Rentis with 27.9%
In a recent analysis of Alpha Bank’s weekly bulletin of economic developments, it was pointed out that an important role in the increase in housing sales prices in recent years has been played by the country’s economic growth, which in the last three years has been significantly higher than the European average.
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