PROPERTY

Athens realty very attractive

Athens realty very attractive

Athens is one of the most attractive cities in Europe for foreign investors in property, which explains the volume of transactions in recent years.

A recent survey by the ProfitLevel investment company showed Athens is the second most favorable market for investors, as based on the level of house sales prices and the expected revenue from rents, it only takes 17.66 years for the original investment to be amortized.

Athens was narrowly beaten only by Valencia in Spain, with 17 years, and followed by Marseille, in the south of France, where it takes 21.78 years for a property investment to be amortized, and Barcelona with 22.5 years. Crete stands sixth in the list with an average time of 23.37 years.

By contrast, cities in Central Europe are now less attractive for investors, due to the constant climb in prices in recent years, with properties in Warsaw, Prague and Dubrovnik taking between 31 and 42.38 years.

That is also a reason why the Greek market has started to attract more “mature” investors – i.e. people who aren’t aiming at a short-term profit, but go for a log-term investment.

The significant increase in rental rates in Greece has also contributed to that, especially since 2017. This has not shown any decline in the years of the pandemic. Nowadays, based on data from the Spitogatos online platform, the average asking rent in Attica amounts to 8 euros per square meter, while in the center of Athens it reaches up to €8.8/sq.m.

In a report released last fall, RE/MAX Hellas said the annual increase in rents in the capital’s center amounted to 11.6% on average. In total, since 2017, rental levels in many areas of Attica are seen to have grown by 50%.

Given that sale prices are still 20-30% below their recent highs, before the financial crisis of the previous decade, many foreign investors realize the local realty market offers significant opportunities. After the 34.7% increase in capital inflows for property purchases last year, a further increase is anticipated for 2022.