Demand eases but prices rise
Interest in realty soars in Piraeus, partly thanks to Golden Visa threshold shifts
The rate of the increase in asking prices for the sale and rent of houses in Attica accelerated in the fourth quarter of 2023, a sign of the consistently high expectations of property owners, although, as more and more brokers now point out, demand is showing signs of fatigue in the last few months.
According to data of the Spitogatos Property Index (SPI), Attica recorded an annual increase of 14.8% in house sale prices, compared to an increase of 13.6% in the third quarter. The average selling price is 2,293 euros per square meter, compared to €2,230/sq.m. in the previous quarter.
As far as renting rates go, an increase of 9.9% was recorded in the fourth quarter compared to the corresponding period of 2022. In the third quarter, the average rental price had registered an annual increase of 8.2%. Now, the average asking rent is €9.4/sq.m., from €9.25/sq.m. in Q3 of 2023.
Among the areas with the biggest rise in sales prices, the port city of Piraeus stands out by a significant margin. Based on SPI data, average annual growth in the fourth quarter shot up to 23.2%, with the mean asking price now reaching €2,175/sq.m, from €1,765/sq.m. a year ago. In the suburbs of Piraeus the average increase is even greater at 25.2% and the average asking price reaching €1,800/sq.m., from €1,433/sq.m. in the same quarter last year.
The wider region of Piraeus has become the new magnet for investors from third countries, who are interested in obtaining a residence permit through the Golden Visa program, which still offers residence permits for an investment of €250,000 or more there. In Athens, the northern and southern suburbs, the minimum investment threshold has now doubled to €500,000, directing interested investors to other areas, especially Piraeus.
However, as reported by agents and offices specializing in investment migration programs, this sharp increase in asking prices is not realistic, given easing demand.
Many investors are already turning to other areas, as many of the properties offered for sale do not meet these prices and do not have special investment features.
