Golden real estate: 5 areas with high prices and strict regulations
Prices for new and old real estate in Athens have reached a ten-year high. According to the 2023 GEOAXIS Real Estate Observatory, there is an impressive increase in potential apartment prices in five areas of the Athens region: Ampelokipi (Center), Marousi (North), Paleo Faliro (South), Peristeri (West), and Chalandri (East). From the third quarter of 2023 to the third quarter of 2022, an average annual increase of 14.92% was recorded for new apartments and 13.81% for old ones. The significant price growth is explained by a decrease in supply (due to an excellent tourist season and Airbnb), meaning the current selection mainly includes newer and more expensive apartments. The company's analysis over the past 10 years shows an average annual increase of 66% for new apartments and 61% for old ones compared to the values from 2014.
According to market research, with an average area of 95 sq. m, an average age of just 2 years, and located on the ground floor, the highest price values are noted in Holargos (€4,048/sq. m, compared to €3,565/sq. m with an annual growth of 13.55%), followed by the Paleon Faliro area (€3,400/sq. m, compared to €2,950/sq. m with an annual growth of 15.25%), Marousi (€3,304/sq. m, compared to €2,856/sq. m with an annual growth of 15.69%), Ampelokipi (€2,795/sq. m, compared to €2,500/sq. m with an annual growth of 11.80%), and finally, Peristeri (€2,401/sq. m, compared to €2,029/sq. m with an annual growth of 18.33%).
Regarding old apartments (over 35 years old), with an average area of 100 sq. m, an average age of 43 years, and located on the second floor, the highest price values are noted in Holargos (€2,235/sq. m, compared to €1,985/sq. m with an annual growth of 12.59%), followed by Marousi (€1,852/sq. m, compared to €1,620/sq. m with an annual growth of 14.20%), Paleo Faliro (€1,751/sq. m, compared to €1,536/sq. m with an annual growth of 14%), Peristeri (€1,487/sq. m, compared to €1,268/sq. m with an annual growth of 17.27%), and finally, Ampelokipi (€1,457/sq. m, compared to €1,313/sq. m with an annual growth of 10.97%). According to this data, Peristeri had the highest annual growth, while Ampelokipi had the lowest growth compared to other areas.
Experts predict that the gradual transformation of apartments into workspaces will lead to tectonic changes in the processes of design, construction, and renovation (materials, networks, insulation, common areas, etc.). Despite low yields, a lack of supply, and increased demand, apartments will increasingly be added to the portfolios of AEEAP and investors in the coming years.
The preferences of the younger generation
The confident inability of a significant portion of modern youth to acquire their own housing is forming a "generation of renters," which is expected to become dominant in the coming decades even in countries with high ownership rates, such as Greece and Spain. The constant widening gap between the growth of base salaries and the cost of real estate is telling and fully explains the financial basis for the shift towards renting. Notably, between 2012 and 2022, according to EUROSTAT data, base salaries decreased by 11.7%, while the cost of apartments across Greece increased by 17.0%, according to the Greek Directorate.
Source: OT.gr
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