According to Mr. Lefteris Potamianos, head of the Potamianos Real Estate Group and president of the Athens-Attica Real Estate Association, “yes, rents have risen significantly since the financial crisis and are approaching 2009 prices in some cases, but household incomes have not increased.” corresponding growth was recorded. During the financial crisis, they fell significantly and have not increased since then. This is a problem in the rental market today,” says Mr. Potamianos.

Between 2010 and 2016, the country’s GDP shrank by almost 25%, or 56 billion euros. The drop in deposits was even greater as it is estimated that a total of 116 billion euros were lost from the highs of 2009 at the end of 2016, representing a decline of around 50%. Most of this amount, or about 76 billion euros, was lost in the early years of the economic crisis and mostly before 2012. As a result, the total wealth per adult in the country has fallen from around €170,000 in 2009 to €108,000 in 2009. 2021. This index is calculated based on the sum of the value of real estate and deposits, and subtracting private debt.

Causes

The cost of renting an apartment for a family (80-100 sq.m.) ranges from 500-800 euros and in some areas exceeds 1000 euros.

However, the real estate market does not follow the basics of the economy. Apparently, rental prices in some areas have increased by 55% from 2017 to the end of 2022. This increase is due to a number of factors, starting with the fact that significant funds flowed from abroad to buy real estate, which increased liquidity in the economy and in the real estate market..

At the same time, given that rents fell by a very significant percentage through 2016, many households wanted to take advantage of this and decided to rent. In addition, the option of buying real estate was now a dead end due to the impossibility or even unwillingness of access to bank loans.

This trend has consolidated the high demand for rentals in the market. At the same time, however, the supply of housing has not only not increased, but has been steadily declining in recent years. The reason is twofold. First, it is estimated that between 40,000 and 50,000 properties have left the housing market due to NPLs being foreclosed.

This can also be seen from advertisements, where there are very few free objects built in the period 1995-2010, i.е. acquired during the booming market and massive bank lending. Another reason lies in the significant percentage of apartments that owners choose to leave vacant due to the significant damage caused to them by past tenants, as well as in many cases of non-acceptance of the inheritance.

Magnet for students, families and Airbnb

Pagrati becomes the “champion” of the rent increase. The average rental rate today stands at 8.7 euros/sqm, recording a 45% “growth” since 2017, bringing it almost 14% (13.8%) above the historical high recorded in 2009, when the rent in this area was 7.5 euros/sq.m.

This area seems to have benefited more than any other due to its proximity to tourist attractions (like the Zappeion, the National Garden, the Panathinaikos Stadium and of course the Acropolis), making it a key investment option for those who are interested in acquiring real estate to be operated, mainly through digital short-term rental platforms. At the same time, the area is in high demand with students as well as families who want to be close to transportation and the center of Athens.

A similar trend is observed in other areas of the center of Athens, such as Exarchia and Kypseli. For example, in Exarchia, the average rent now exceeds the level of 2009 by 5.9%, reaching 8.5 euros/sq.m., an increase of 54.5% compared to 2017. Accordingly, in Kypseli the average rental price is 7 euros/sq.m. m., having increased by 55.6% since 2017 and remained at the level of 2009.
The Athens city center areas are also expected to benefit from the expansion of the metro with the new Line 4, which has already begun construction. For example, both Kipseli and Exarchia benefit from the operation of new stations.

High demand for housing, focus on Agios Dionysios

The Piraeus area has become an important source of demand for rental housing. Today, the average rent is 7 EUR/sq.m., which is 55.6% higher than the low of 2017, when it did not exceed 4.5 EUR/sq.m., and only 2.85% lower than in 2009 (7, 2 euro/sq.m.). m.). However, this upward trend is likely to continue. The arrival of the subway, the return of Chinese investors for the first time since the pandemic, and the imminent operation of the Piraeus Tower next fall are expected to further boost housing demand in the area.

In this context, the area of ​​Agios Dionysios is in the center, as it is located very close to the city center and is suitable for accommodating new homes. The existence of dozens of vacant or unused properties, mostly artisanal and industrial in nature, is a first-class “leaven” for attracting investment to renovate them and turn them into modern residential buildings. In the end, both the purchase and the lease interest are given. In fact, the first linked projects have already started to be created in the selected properties.

Placement of new office premises with an area of ​​more than 65,000 sq. m on a wider area of ​​Piraeus serves as a springboard to attract more permanent residents to Piraeus. Over 45,000 sq.m. has been created by the reconstruction of the former properties of the Papastratos tobacco industry alone. new office buildings and Pyrgos Piraeus will add another 17,000 sq.m. This trend is expected to continue in the coming years.

“Convenient” area of ​​the northern suburbs

Chalandri is proving to be one of the most sought after areas in the northern suburbs. Although other suburbs such as Maroussi, Agia Paraskevi, Cholargos and Neo Psychiko are also in high demand, it seems that Chalandri has shown the highest rates in recent years.

According to a study by Potamianos Real Estate Group, today the average rent for an apartment of 80-100 sq.m. and 20 years, is set at 8.3 euro/sq.m., i.e. about 750-850 euros per month.

This is 38.3% more than in 2017, and compared to the market peak in 2009, the deviation is only 2.4% (8.5 EUR/sq.m).

According to market leaders, Chalandri benefits primarily due to its large size, and therefore the presence of a significant number of properties for rent, relatively new housing stock, as well as its location.

The area is in close proximity to the eastern suburbs, as well as the business center of the northern axis of Kifisia Street, where hundreds of companies and multinational groups are located.

Also, the area is located near the center of Athens, as a result of which it is considered an ideal place to settle. It should be noted that in its northeastern part, Chalandri is also served by two metro stations (Dukissis Plakentias and Chalandri). There is also a suburban railway station at Dukissis Plakentia station, on the border with Vrilissia.