How real estate prices were shaped in Greece 2023
Residential real estate in Greece on the rise in 2023 – The most expensive areas to buy or rent.
Increased asking prices for the sale and rental of homes were observed across almost the entire province for the first quarter of the year was recorded by SPI, the Spitogatos price index that captures the evolution of prices over time in the domestic real estate market based on millions of actual listing data from Spitogatos site.
The 1st quarter of 2023 closed with the average asking prices for selling and renting houses a situation that maintained a steady upward trend almost all over Greece, with +9% average increase in asking sales prices and +5% average increase in asking rental prices compared with the first quarter of 2022, while an increase of +3% and +4% respectively was recorded in relation to the last quarter of 2022.
How prices were shaped in the sale of houses in the first quarter of 2023
An increase of +9.6% compared to last year is shown by the average asking price of housing throughout the Attica basin. The highest average asking prices during the 1st quarter of 2023 were presented in Vouliagmeni (€6250.0/sq.m.), Voula (€4901.9/sq.m.), Glyfada (€4375.0/sq.m. .), Alimos (€4358.9/sq.m.), Kolonaki (€4255.3/sq.m.) and Elliniko (€4222.2/sq.m.). Of particular interest is the fact that the average price of an apartment in the Eastern Suburbs is among the highest asking prices at regional unit level nationwide (€2350.0/sq.m.) with Gerakas, Anthousa and Paiana showing the biggest increase compared to last year by +21.1% on average.
In Thessaloniki, the champions on this situation were the regions of Pylaia ( about €2377.6/sq.m.), the Center of Thessaloniki (€2333.3/sq.m.), the Triandria-Doxa area (€2055.6/sq.m.) , the Analipsi-Mpotsari-Nea Paralia area (€2026.7/sq.m.) and Thermi (€2000.0/sq.m.).
Greece in general
About Greece we can observe that this country continues to be a very popular destination for domestic and international investors, who come in search of higher returns on their investments. In particular, in the Southern Suburbs of Attica, the islands of the Cyclades and Halkidiki, destinations chosen by investors in recent years, the asking prices of residential purchases increased during the 1st quarter of 2023 compared to the same period last year by +13.2%, +8.1% and +12.5% respectively, which indicates the strong interest investors tend to have for Greece.
The increase in the asking prices of newly built homes is of interest. Indicatively, in the Attiki region, the average sales price of newly built homes increased by an average of +15% compared to the last quarter of 2022. The rapid increase in the cost of construction materials combined with the need for green adaptation of properties, are some of the factors that can explain the large increase.
Overall, we can observe that in the territory the largest changes in the average asking prices of residential sales in relation to the 1st quarter of 2022 were observed in Paros region, famous greek island (+24.9%), Kallithea (Southern Suburbs of Attiki) (+24.4%), Thermi (Municipality Thessaloniki) (+23.1%), in the center of Thessaloniki (+22.8%) in Voula (Southern Suburbs of Attica) (+22.5%), in Kalamata (+22.4%) and in Chania (+ 22.2%). In fact, in Chania we had a +26.7% increase in the average sale price of apartments compared to last year, ranking them among the cities in Greece with the highest prices.
Residential rental prices in the first quarter of 2023: An overall look
The largest increases in asking rental prices compared to the 1st quarter of 2022 were seen in Rethymnon (+20.0%), Athens Center (+15.4%), Voula (+14.2%), Dionysos (+13 .9%), New Erythrea (+13.7%) and Sepolia (+13.1%).
A sharp rise in the asking rental prices was observed in areas of Attiki near the new metro line 4 stations. More specifically, in Exarchia, Ilisia and in the Patision-Acharnon area there was an impressive increase in the average asking prices of apartments compared to last year by +13.3 %, +13.2% and +11.2% respectively.
Very interesting is the increase in available studios and apartments for rent compared to last year, in the large so-called “student cities” such as Volos, Larissa and Alexandroupolis, which may be due to the return of students to universities after the covid-19 pandemic, which led to an increase in demand for accommodation.
In the entire territory, the regions with the highest average asking prices for housing rentals appear to be Halkidiki (€32.3/sq.m.), the Cyclades region ( about €15.0/sq.m.), the South (€11.1/sq.m.) and Northern Suburbs of Attica (€10.3/sq.m.) as well as the Center of Athens (€9.4/sq.m.).
Greek auxiliary housing program: «MY HOME»
An important factor that is expected to positively affect domestic demand for real estate is the granting of mortgage loans by the state to young people aged 25-39 who meet the financial criteria through the “My Home” program, which has started to be in force, as well as the announcements made on the freezing of mortgage interest rates.