Real estate prices keep inching higher
Increases of up to 39% recorded in 2022 in areas of central Athens, suburbs and Piraeus
The return of foreign buyers, redevelopment projects and expectations due to metro extensions are seen as the main driving forces behind the rise in asking prices in 2022 for real estate in central, northern and southern Athens.
Another factor is the effort of many Greeks to get ahead of the curve in buying property before interest rates rise to a prohibitive level.
According to the price index data of the Greek property ads website Spitogatos, a large increase has been observed in districts such as Mets and Kallimarmaro (Panathenaic Stadium) in central Athens, with the average asking price now reaching 3,240 euros per square meter, a rise of almost 22% compared to 2021.
The upcoming redevelopment and extension of metro lines in the surrounding areas have contributed to an even greater increase in average asking prices.
Indicatively, compared to 2021, there was an impressive increase in real estate sale prices in Mets (+22%), Ilisia (+21%) and Goudi (+20%).
The most expensive areas in the center are the historic center and Kolonaki, while the highest prices are to be found in the southern coastal suburb of Vouliagmeni, where the average asking price increased by 19% last year to 5,933 euros/sq.m.
Foreigners prefer properties in the center of Athens, and especially near to tourist attractions, aiming to exploit them either through short-term rentals or long-term contracts.
What’s more, the number of digital nomads who rent a property for several months a year is steadily increasing.
Foreign investors are also choosing areas in the southern suburbs, looking forward to future capital gains from the development of the Athenian Riviera, with a focus on Elliniko.
At a national level, the average increase in asking sales prices in 2022 was 7.2% year-on-year, while in the fourth quarter of the same, the annual increase amounted to 8%.
Data from the Bank of Greece showed that in the first nine months of 2022, foreign investors placed a total of 1.27 billion euros in capital, which is tantamount to a 60% increase compared to the same period in 2021.
Essentially, the pace of foreign investment in the real estate market has returned to the level it was at before the pandemic and is even expected to surpass it.
