11/4/2024
The Greek rental market is experiencing significant changes, driven by increasing demand and rising prices. The shortage of affordable housing has intensified, particularly in major cities like Athens and Thessaloniki. These changes are shaping certain trends that define the current rental market situation in the country.
1. Rise in Rental Rates and Housing Shortage
This year, rental prices in Greece have continued to climb, increasing by an average of 5.6% compared to last year. The primary reason is the acute shortage of available apartments for rent, especially in Athens and Thessaloniki, where demand significantly outweighs supply. Consequently, even renters accustomed to city centers are now turning to the suburbs, which is driving up prices in those areas as well.
The sharpest increase in rental rates has been recorded in Attica, where rents have risen by 7.6%, making it one of the most expensive regions for housing rental in the country.
2. Thessaloniki — Leader in Rental Cost per Square Meter
This year, Thessaloniki has taken the lead in rental rates, surpassing Athens. The average rental price here is €9.2 per square meter, higher than in Athens, where the same metric is €8.8. This is due to high demand for housing, a limited number of listings, and Thessaloniki’s popularity as a cultural and educational center.
In historical districts of the city, such as Nea Paralia and Palia Paralia, rental rates reach a maximum of €10 to €14.8 per square meter.
3. Attica Remains an Expensive Region
Although Thessaloniki has surpassed Athens in average rental rates, Attica remains an expensive area for renting. The average price here is €8.5 per square meter, significantly higher than last year’s level of €7.2. High demand, infrastructure development, and the region's popularity among tourists and expats contribute to the steady increase in prices.
4. Stable Rental Growth in the Suburbs
The shortage of affordable housing in central Athens is driving more renters to consider options in the suburbs. This trend is noticeable not only in the northern and southern suburbs of the capital but also in its eastern and western areas. Average rental rates in the northern suburbs have reached €9.6 per square meter, and in the southern suburbs, €10.10. This suburban growth indicates that pressure on the housing market remains strong, and landlords are compensating for high demand by raising prices even outside central areas.
5. Desirable Neighborhoods with High Rents
Areas with high cultural and historical value remain among the most expensive. In Athens, Kolonaki and Exarchia continue to be the most sought-after neighborhoods, with rental prices reaching up to €14 and €9.4 per square meter, respectively. These areas attract renters not only for their rich history and infrastructure but also for their proximity to key business and cultural venues. In Thessaloniki, similar neighborhoods maintain high rental price levels as well.
6. Prospects for Investors: High and Stable Demand
For investors, the current rental market in Greece offers good opportunities. Growing demand and stable rental price increases make real estate investments a reliable source of income. Given the ongoing housing shortage, demand for rentals is likely to continue to outstrip supply, sustaining high rental rates.
Conclusion
The Greek housing rental market in 2024 is undergoing significant changes due to a shortage of listings and high demand, particularly in major cities. This contributes to rising prices both in central and suburban areas, making Greek real estate attractive to investors seeking income stability.