According to data collected from credit institutions, apartment prices (in nominal terms) are estimated to have increased on average by 7.9% year-on-year in the third quarter of 2021. According to revised data, the year-on-year increase in the first and second quarter of 2021 was 4.3% and 6.2% respectively, while in 2020 apartment prices increased by an average annual rate of 4.5%.
The Bank of Greece in particular expects that in the third quarter of 2021 the year-on-year rate of increase in prices was 7.6% for new apartments (up to 5 years old) and 8.2% for old apartments (over 5 years old). According to revised data, in the first and second quarter of 2021, an increase of 4.5% and 6.2%, year-on-year, respectively was recorded in prices for new apartments, whereas for old apartments the prices increased by 4.1% and 6.2%. In 2020, the average annual rates of increase were 4.8% and 4.2% for the prices of new and old apartments, respectively.
Broken down by region, in the third quarter of 2021 apartment prices increased year-on-year by 9.8% in Athens, 8.7% in Thessaloniki, 5.9% in other cities and 5.7% in other areas of Greece. According to revised data, in the first and second quarter of 2021 apartment prices increased, year-on-year respectively, by 6.7% and 8.3% in Athens, 4.6% and 5.4% in Thessaloniki, 2.1% and 4.4% in other cities and 1.3% and 3.6% in other areas of Greece. For 2020 as a whole, prices increased on average by 7.8%, 5.0%, 0.2% and 1.8% respectively in the above-mentioned areas. Finally, as regards all urban areas of the country, in the third quarter of 2021 apartment prices increased year-on-year by 8.3%. Based on revised data, in the first and second quarter of 2021 apartment prices in all urban areas increased by 4.4% and 6.4% year-on-year respectively, while for 2020 they increased at an average annual rate of 4.7%.
Newdeal real estate group president commented on this upward trend.
Will this upward trend continue? Does it concern all areas? If not which ones will increase the most?
Stavroula Vamvaka, president of the newdeal real estate group says that we have entered an upward price curve for three years - as in all of Europe - which slowed down in the first wave of the pandemic but did not stop, due to the central policies for liquidity and financial support for households and businesses.
"In this new trajectory we will see periods of greater or lesser increase in real estate prices that will depend on GDP growth, but also other factors (eg taxes, bureaucracy, international investment wave, golden visa, etc.). ) », Estimates the president of the newdeal real estate group in ΑΠΕ - ΜΠΕ.
Ms. Vamvaka also adds that "it makes sense for areas where infrastructure (eg metro) or renovation (eg Greek) projects are being carried out to increase prices. On the contrary, areas that are less "trendy" than Greek and foreign investors the price performance will be lower.
At the same time, a new generation of newcomers is appearing on the market. In some areas they will squeeze the prices of old real estate, while in others they will pull them up. In any case, however, it is certain that we will not return to prices of deep crisis as in the previous period ".
