Following a bearish 2020 and a tumultuous 2021 that brought sharp increases in property prices, the last quarter of 2022 closed with average asking sales and rental prices maintaining a steady upward trend almost across Greece, +8% on average increase in selling prices and +5% average increase in rental prices respectively, compared to the last quarter of 2021.
"Real estate seems to be an investment with more stable returns, in an environment where inflation is increasing and justifies, to a large extent, the steadily increasing property sales prices we saw in 2022", states Dimitris Melachrinos, CEO of Spitogatos .
Additional factors - challenges - had a significant impact on the image of the real estate market throughout the year. The increase in the prices of building materials, which obviously affect the sale prices of newly built houses, the increase in the rate of granting mortgage loans, but also the increase in interest rates due to inflation, contributed significantly to the higher demand for properties for sale and therefore to the increasing average asking prices their.
Home sales: the regions that recorded soaring prices
For 2022 in the whole territory, the annual increase in average asking sales prices in relation to 2021 was +7.2% with the biggest changes being observed in the Attica basin and specifically in the Northern and Southern suburbs of Attica, in the Center of of Athens and the suburbs of Piraeus.
Throughout time, the areas of the southern suburbs have attracted both private and investment interest. Of course, the development of these areas in the context of the Athenian Riviera projects seems to have given them an even greater boost. For example, an apartment in Vouliagmeni for 2022 had an average purchase price of €5,933/sq.m., an increase of 19% compared to 2021. Accordingly, in the center of Athens, the areas of the Historic Center and Kolonaki are located in top of the list with the highest prices. At the same time, the urban interventions in the center of Athens, in the framework of the Grand Promenade projects, as well as the upcoming renovation and expansion projects of the metro stations in the surrounding areas, contributed to an even greater increase in the average asking prices of real estate. Indicatively, compared to 2021, there was an impressive increase in property sales prices in Mets (+22%), Ilisia (+21%) and Goudi (+20%).
High prices were also recorded in the center of Piraeus and its Suburbs. For example, in the Center-Port of Piraeus there was a +10% increase in real estate sales prices compared to 2021. A very important role in the upgrading of the wider area was played by the opening of the new metro stations in October 2022.
In Thessaloniki, the "champions" are the Forty Churches, Agios Pavlos and Toumba, with increases in the average sale price of real estate compared to 2021 by +39%, +24% and +20% respectively. In the rest of Greece, larger increases in real estate sales prices compared to 2021 were found in Preveza, Sporades, Halkidiki, Trikala, Larissa, Chania, Corinth and the Cyclades.
Home rentals: remarkable price increases throughout the year
In 2022 throughout the territory, the increase in average asking rental prices compared to 2021 was +6.7%, with the highest changes being found in Vari-Varkiza (+23%), Filothei (+21%), Ymitto (+18%), Kifissia (+15%), Piraiki (+14%), Kolonaki (+13%), Agia Paraskevi (+12%) and Pagrati (+11).
The ever-popular areas of Attica saw even greater increases in rental prices, which rather suggests that the areas with high investment interest retain their great strength.
It is also undeniable that the upcoming extension of the metro network with Line 4 has already affected areas around the new stations. Indicatively, in Kypseli, Galatsi, Ilisia and Exarchia there was an average increase of +8.5% in apartment rental prices compared to 2021. During the year, areas in the Eastern Suburbs of Attica showed a large increase in rental prices. For example, in Glyka Nera, Gerakas and Loutsa there were increases in rental prices of +20%, +15% and +8% respectively.
The easy access to the sea to popular beaches of the basin, the urban "comfort" of these areas and the easy access to the "Eleftherios Venizelos" airport, give the eastern suburbs competitive advantages compared to other suburbs of Athens and make them, as looks very attractive. This tendency to move the population towards the East of the prefecture may be helped by the fact that there are now more available options of various types of properties (apartments with 2 or 3 bedrooms, studios, maisonettes, etc.), as well as the ever-increasing rental prices of corresponding houses in North and South Suburbs of Attica but also in the areas around the Center of Athens.
According to Mr. Melachrinos, "Based on the data so far, the trend of demand remains upward, while the course of real estate in Greece is more dynamic compared to other European countries experiencing a recession, such as Germany for example. There are, however, several challenges for real estate in the new year, such as the evolution of inflation, mortgage interest rates, the management of non-performing loans, and programs to support the acquisition of a first home, in an election year. 2023 will be an interesting year."
