In the first six months of 2018, purchase prices in Athens were at an average value of € 1,500 / sqm. Real estate prices are thus twice as low as in Lisbon, three times cheaper than in Madrid, Barcelona or Berlin.
According to the bank of greece, real estate was 44% cheaper at the end of 2017 than the last high of the 2008 prices. Real estate prices in Athens reached a low point in December 2017, prices have risen steadily since then.
Short breaks in Athens enjoy increasing popularity and also rents go up. In the the popular area of Koukaki, rents have risen by 35% in the last 12 months. At the national level, rents have risen by 8.4% compared to 2017, and vacancy in the residential real estate sector is steadily declining. A large demand for short-term accommodation such as Airbnb or Homeaway is causing a decline in long-term tenants and an increase in rent - especially in the city center.
In 2018, rents in almost all regions of Greece increased - in Thessaloniki it was 14.4% compared to the previous year. In Athens, rents have increased by 20%, in Glyfada by 12%. Over the next few years, dozens of new hotels will be opened in Athens. According to ELSTAT, the number of building permits rose by 6.5% in the first quarter of 2018. From April 2017 to March 2018, 14k building permits were granted. Clearly lower than in 2008, when 65k licenses were issued. Nevertheless, it can be seen that there is a recovery of the construction activity.
"In this economic phase, construction activity is almost exclusively closed to those who have secured liquidity of the bank taps. As a result, foreign investors are the first funds to place in the Greek real estate market, " says president of the Association of companies for the quality and development of structures (Stepak), Petros Papaioannou.
The Greece Housing Price Index is expected to stand at 64.00 in 12 month’s time. In the long-term, the Greece House Price Index is projected to trend around 66.00 Index Points in 2020, according to econometric models