Psyrri, the Athens neighborhood situated near Monastiraki and Plaka that had been in decline in recent years after becoming something of a hotspot for entertainment venues and eateries in the 1990s and 2000s, is today proving increasingly popular among both tourists seeking holiday rentals and the accommodation market in general.
In the last few weeks alone three new investments have come to light regarding the transformation of properties in the area into small hotels or apartments for short-term rentals – or even both.
“Over the last year the district of Psyrri has made a dynamic return to the property market. Domestic and foreign investors have acquired a multitude of properties, mostly abandoned, aiming to reconstruct them and turn them into accommodation units,” says Nasos Gavalas, managing director at property management company Mint.
Gavalas says this was quite predictable as the district has a high number of the right kind of properties and is an ideal location for the development of hospitality institutions. “Besides being next to Monastiraki, Plaka and the Acropolis, Psyrri is picturesque and beautiful, which can’t be said for areas such as Koukaki,” Gavalas explained to Kathimerini.
Even the state is expected to make the most of the new trend, as the Public Properties Company (ETAD) is planning to sell apartments it owns in the area, many of which are seen as appropriate for short-term rentals. The Labor Ministry is also preparing to utilize Single Social Security Entity (EFKA) properties in the area, with a long-term leasing tender expected this summer.
The eagerness of investors to develop properties in the center of Athens is based on the belief they can secure capital gains in the long term, which is backed by recent data: In the city center there are 1,476 properties available for short-term lets on the online platforms of Airbnb and HomeAway. According to analysis agency AirDNA, the average daily revenues for those apartments comes to 65 euros and the occupancy rate stands at 58 percent. This translates into monthly revenues of 1,100 euros, which soars to 1,700 euros in the summer months, when the occupancy rate climbs to 83 percent and average daily revenues to 83 euros.