Disparity between asking price and reality
Vast discrepancies in expectations of property sellers in Attica and actual transactions
There are significant disparities between the expectations of sellers and reality when it comes to property transactions in Attica, according to data regarding sales in 2023 compiled by the RE/MAX Hellas network of real estate offices and the Spitogatos Price Index (SPI) of the online classifieds network Spitogatos.gr.
The discrepancy indicates an inflation of prices that could lead to a correction, especially if buying interest from abroad begins to wane.
The largest disparity is found in the southern suburbs, where asking prices appear to be 25% higher on average, compared to actual sale prices, at least with those made through the RE/MAX network.
More specifically, the asking price in classified ads was 3,664 euros/sq.m., while the transactions carried out were at 2,755 euros/sq.m. on average.
Real estate sources say it was already evident from 2022 onward that there had been a leap in the expectations of sellers in the southern suburbs, even for properties which do not offer the quality features justifying the asking prices. Tellingly, even if the apartment for sale is not close to the beachfront, not adjacent to Elliniko and needs extensive renovation work, asking prices are very high compared to other parts of Attica.
In Alimos, for example, the asking price now reaches 4,788 euros/sq.m., while, based on RE/MAX data, new buildings in the area were sold in 2023 for 4,000 euros/sq.m. with older properties going for 2,530 euros/sq.m. – a 47% difference. In Glyfada the discrepancy is 12%, with the asking price reaching 4,811 euros/sq.m., while actual sales were 4,230 euros/sq.m.
It should be noted that in home sales, even in the current high-demand environment, there is usually a margin for negotiation, which, depending on the area and the individual property, can be either negligible or as high as 15%. Therefore, a deviation of 5-10% is considered normal. However, the data indicates that in southern suburbs, and other areas of Attica, the discrepancies are far higher.
Another case in point is downtown Piraeus, where the average asking price now reaches 2,333 euros/sq.m., while sales prices do not exceed 1,950 euros/sq.m. – i.e. 16.4% lower. The large increase in asking prices, which exceeded 30% in the last year, has been fueled by the forced shift of foreign investors, through the Golden Visa program.
