Greek and international investors and buyers are constantly looking for opportunities in the real estate market in our country, in a market that is in its seventh year of continuous growth.
Their interest in residential properties in Athens neighborhoods as well as in country houses highlights surprising areas in terms of their yields and sales prices.
At the same time, Elliniko, where the first smart green city is being created from the ground up in Europe, is a special case study in the real estate sector.
But which areas of the center of Athens stand out in terms of returns? Where are prices moving? What are the trends in the holiday home?
Real Estate: These areas have the highest returns
New Athens neighborhoods are emerging as top choices for investors and property owners looking for attractive returns and capitalization opportunities.
Protio’s most recent analysis revealed the areas that have now become hotbeds of investment interest, thus illuminating the continued dynamics of the income property market in central Athens and the suburbs.
Topping the list of areas with the highest yielding income properties are Ano Dafni and America Square, with the latter continuing to be at the top, both at 7.1%, indicating the significant increase in rental prices in these neighborhoods.
The Polytechnic with 7% and Aegaleo with 6.9% maintain their high yields, a result due to the development of the surrounding areas and their accessibility to transport and central points.
This dynamic also extends to the neighborhood of Larissa Station – Vathi Square with a yield of 6.6% and in Korydallos with 6.5%, where the interest in real estate investment remains strong, and more and more people are proceeding with real estate renovations in order to exploited through renting. The yield is also stable in Kypseli at 6.4%, an area with historical charm that still attracts investors for long-term yield.
It is followed by Peristeri with 6.3%, which, as one of the largest areas of Attica, offers attractive opportunities due to its size and demand for rental apartments. Also standing out in the list are Paradisos in Maroussi with 6.1%, representing the strong growth of the northern suburbs, and Kato Chalandri with 5.6%, which is added as yet another new option with remarkable upgrade prospects.
These areas, as Protio estimates, are a “new breath” in investments, offering many possibilities for the renovation of old properties and the upgrading of energy infrastructure. Owners and investors can take advantage of high returns with strategic upgrades that increase property value and generate greater returns than the traditional market.
Why Ano Dafni and Pl. America are superior to Kolonaki
By higher yield we mean the percentage of annual rental income in relation to the value of the property, thus expressing the “return” of the investment through rental income.
Simply put, the yield shows us how much income the property brings in each year from rents, relative to its purchase cost.
Let’s look at the example of Ano Dafni with a yield of 7.1%. As Protio explains, this price means that if someone buys a property there, the annual rental income is 7.1% of the property’s purchase value.
More specifically with an example on a property of 70 sq m:
• The sale price per sq.m. in Ano Dafni it is approximately 2,409 euros.
• The average monthly rent per sq.m. it is 14.3 euros.
Therefore:
• Selling price: 70 sq.m. x 2,409 euros/sq.m. = 168,658 euros
• Monthly rent: 70 sq.m. x 14.3 euros/sq.m. = 1,001 euros
• Annual rental income: 1,001 euros x 12 months = 12,012 euros
To calculate the yield, we divide the annual rental income by the market price and multiply by 100: Yield = (12,012/168,658)×100=7.1%
As for Kolonaki, the yield fluctuates at much lower levels, around 3-4%. According to the data, the sales price in Kolonaki is approximately 6,097 euros per sq.m., while the monthly rent amounts to 20.1 euros per sq.m.
The lower yield in Kolonaki is a result of high property values in the area, which lowers the rent-to-purchase ratio.
Although the area remains attractive due to prestige and increased demand, its performance is more subdued compared to areas such as Ano Dafni or America Square.
Newly built or old houses? – Which ones do they prefer and in which areas
Over the course of a decade, the average increase in the value of each type of apartment was measured at over 78%, on the way to doubling the price, according to the Apartment Observatory of GEOAXIS, a certified property appraisal company in Greece.
The level of increase in values for newly built apartments is determined at 8.51% compared to a year ago and a not inconsiderable 24.7% compared to two years ago.
For older apartments, the increase is also very large (7.81% compared to a year ago and 22.68% compared to two years ago).
In particular, according to the GEOAXIS Observatory, between the 3rd quarter of 2023 and the 3rd quarter of 2024, a median annual increase of 8.51% is recorded for newly built apartments and 7.81% for older apartments.
In the new-age apartments, with an average area of 105 m2, a median age of just 1 year and on the 2nd floor, the market research led to the conclusion that the highest values are recorded in Cholargos (4,267 euros/m2 from 4,048 euros/m2, with an annual increase of 5.41 %), and then in order: in Paleo Faliro (3,715 euros/sqm from 3,400 euros/sqm with an annual increase of 9.26%), in Marousi (3,600 euros/sqm from 3,304 euros/sqm with an annual increase of 8.96% ), in Ampelokipi (3,080 euros/sqm from 2,795 euros/sqm with an annual increase of 10.20%) and finally in Peristeri (2,610 euros/sqm from 2,401 euros/sqm with an annual increase of 8.70%).
Based on the above, Ampelokipi recorded the largest, while Cholargos recorded the smallest annual increase, compared to all other areas
As for older apartments, with an average area of 106 sqm, a median age of 44 years and on the 2nd floor, the survey showed that the highest values are recorded in Cholargos (2,432 euros/sqm from 2,235 euros/sqm with an annual increase of 8.81%) and then in order: in Marousi (2,000 euros/sqm from 1,850 euros/sqm with an annual increase of 8.11%), in Paleo Faliro (1,893 euros/sqm from 1,751 euros/sqm with an annual increase of 8.11%), in Peristeri (1,588 euros/m2 from 1,487 euros/m2 with an annual increase of 6.79%) and finally in the area of Ampelokipi (1,562 euros/m2 from 1,457 euros/m2 with an annual increase of 7.21%).
Based on the above, Cholargos recorded the largest annual increase while Peristeri recorded the smallest annual increase, compared to all other regions.
The market research was carried out by on-site data collection through autopsies carried out by GEOAXIS as well as through advertisements published in newspapers and on the internet, for five indicative apartment purchases, during the 3rd quarter of 2024.
The study areas were defined as the following:
- Vineyards (Center),
- Marousi (North),
- Paleo Faliro (South),
- Peristeri (West),
- Cholargos (East)
According to GEOAXIS, the security offered by the country, combined with the Golden Visa program and the fact that domestic real estate is still cheap relative to Europe and other states (eg Israel), will continue to drive significant foreign capital in the residential real estate market.
Demand from domestic investors (institutional and non-institutional) appears to be sustained as funds are available despite high interest rates. The rebound of the values of the northern suburbs (from Marousi upwards) remains certain, although it will wait a few more months.
By no means is the market experiencing bubble conditions as the level of supply (especially of newly built apartments) is still very limited, relative to demand.
The hottest areas for holiday homes
The market for holiday properties is on the rise, especially in coastal areas. It is a trend that seems to have an increasing path at least for the next 4 to 5 years. Prices will continue to rise but at a lower rate, says Korina Saia, managing director of Premier Realty.
Investors are increasingly buying properties with a view to converting them into short-term rentals, attracted by the possibility of high returns during the tourist season. Specifically, Mykonos and Santorini recorded rental yields exceeding 8%, among the highest in Europe, he adds.
Regarding the course of prices, Ms. Saia states that they remained relatively lower than most European countries – attracting many foreign investors to the country. Demand for holiday properties for sale in the Greek islands and south of Athens remains high, especially from international buyers and investors (mainly from America, England, Israel, Turkey, France and Switzerland) but also from Greeks mainly expatriates.
How much do foreigners pay for a holiday home
According to Premier Realty, the greatest demand exists in the following areas: Especially in the Southern Suburbs (such as Vouliagmeni, Voula, Glyfada) where there is also a large development of projects, in the Cyclades, Paxos, Hydra, Crete and Lefkada. We have also seen increased demand in Evia lately.
Among the most expensive islands, in the Cyclades is Mykonos (average price 6,500 euros/sqm), while in the Ionian it is Paxos (average price 4,900 euros/sqm). The average sales price for Crete was around 2,100 euros/sq.m., in Hydra 5,500 euros and in Lefkada 3,700 euros/sq.m. In Voula, the average sale price was around 6,200 euros/sq.m.
The Greek phenomenon – Why foreigners prefer it
A separate case that affects the developments in the residential real estate market in general is Elliniko, as the construction of hundreds of houses aimed at high and middle income buyers is in full progress as part of the large redevelopment project that is in full progress.
As the managing director of LAMDA Development Odysseas Athanasiou mentioned a few days ago, after the start of the international campaign for the Elliniko project, the demand for housing is growing even more.
“The sales department doesn’t have time to make appointments, the interest is greater than expected and everything that comes up for sale is sold out. What is changing is the mix of buyers, as they are not exclusively Greek. After the start of the international information campaign, the interest is particularly intense, with the result that approximately 40% of buyers are from international markets. The demand for residential renovations from Greece and abroad is greater than initial expectations,” he said.
As the company has announced, all the residential units of the coastal front of the first phase of the project (Villas, Riviera Tower, the Cove Residences) are “sold out”. With regard to the new residential neighborhood “Little Athens”, which will include a total of 1,115 homes and 115 spaces that will serve the daily needs of the neighborhood, pre-sales and pre-reservations for the apartments that will gradually come on the market from the end of 2023 are “running” continuously increasing rate.
As mentioned in the last information meeting, the sales prices in the current time period in Little Athens, which will make the “15-minute city” a reality, i.e. the city where everything is within 15 minutes without a car, range between 7,000 and 17,000 euros per square meter. m.
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