Property market bullish across sectors
The real estate sector’s prospects appear to be bright, at least for the near future, with prices rising and several important projects taking shape.
The growth of tourism positively impacts hotels. According to consultancy Danos/BNP Paribas, 1,400 new hotel rooms are being built in the Athens area, with another 1,100 being refurbished. And that excludes the Elliniko mega-project.
One of the biggest developments involves the building of the One&Only Aesthesis Hotel in the area of Asteria, in the seaside suburb of Glyfada, with a budget of €300 million by developer Grivalia Hospitality. Other brands involved in the construction and refurbishment are Brown Hotel, Radisson and the Hilton brands Conrad, Curio and Hampton.
Prospects in the housing market are also deemed good, with average prices rising 14.7% in Athens’ southern suburbs and 11% in the city center in the second quarter (April-June).
During the same period, rents rose 6.8% in the southern suburbs, 6.7% in the northern ones and 5.8% in the city center.
The largest transactions involved the acquisition of a 320-square-meter penthouse in central Athens for €18 million and a 30-hectare plot in Ermioni, in the Peloponnese, for €18.1 million.
Among prime retail property, vacancies dropped in the first quarter of the year to 1%, compared to 5% in 2021-2022. Danos/BNP Paribas estimates that prime retail space monthly rent, at €340 per square meter, will remain steady.
In shopping centers, rents go as high as €40/square meter, while supermarkets rent for €13/sq.m. Commercial space rent on secondary streets is about €22/sq.m.
