Α global survey by Britain’s CIA Landlord Insurance has found that the lowest sale prices available for residential property are in Athens.
In a relative comparative analysis of the cost of acquiring an apartment in the center of various countries’ capitals, it emerged that Athens is the cheapest option, and indeed by a significant margin from the second.
The average sale price in the city center of the Greek capital is 1,940 euros per square meter, with Madrid in second place at a cost of €3,190/sq.m. Correspondingly, in Rome the relevant cost amounts to €3,790/sq.m., in London €4,826/sq.m., while in Stockholm the average price exceeds €6,000/sq.m.
That explains the significant increase in investment interest from abroad in real estate in Greece, especially in the region of Attica, which includes Athens. During the first nine months of 2022 inflows of foreign capital for the acquisition of real estate amounted to €1.27 billion, per the Bank of Greece, up by 60.2% on an annual basis. This is a historic high, surpassing even the first nine months of 2019, when the corresponding amount had risen to €1.03 billion (and to €1.45 billion euros in total that year). In this context, it is estimated that total property purchases by foreigners in 2022 exceeded €1.5 billion, marking a record high.
The Bank of Greece’s interim monetary policy report noted that “the positive performance of tourism, the growth of short-term rentals and the increase in foreign investment continue to fuel the dynamics of the real estate market.”
What is different today compared to the past, when sale prices were still very affordable for foreign buyers, compared to the cost of buying property in other cities, is the fact that there are more options for housing.
For example, while in the past the long-term lease was one way, today individual investors can also choose properties that are suitable for both short-term rentals and medium-term leases – i.e. letting the property for a period of three, six or nine months to a foreign professional who wishes to work in Athens remotely.