Greek property market showed a remarkable recovery in the fourth quarter of 2019.
According to the quarterly indices of prices of dwellings published by the Global Property Guide, Athens is the city with the fastest-growing apartment prices, since 2019 house prices rose by 11,99% compared to the fourth quarter of 2018. It is expected that there will be a significant increase in house prices in 2020. According to the latest analysis, the growth rate this year is estimated to reach 6%.
A conclusion that can be drawn from the data analysis of the past 20 years is that after almost a decade (1999-2008) when the market was functioning under conditions dictated by sellers, it entered a deep crisis in the period 2009-2014 when the buyers had an “upper hand” in buying or selling a real estate property. However, the Airbnb expansion and the Golden Visa program, in conjunction with tourism growth, have changed the game in the Greek real estate market and are driving up the real estate prices. More precisely, in comparison with 2015, the prices are 30%, 40%, or even 50% higher.
It has become obvious, that prices for newly built apartments are growing faster than for any other type of property. According to the data collected by the Bank of Greece in the second quarter of 2019, the year-on-year rate of increase in prices was 8.9% for “new” apartments, whereas for “old” apartments the prices increased by 6.6%. In general, apartment prices are estimated to have increased on average by 7.7% year-on-year in the second quarter of 2019. It should be noted that the respective increase in the first quarter of 2018 was 2.0%, while in 2018 prices increased by an average annual rate of 1.7% in comparison with 6.9% in 2019.
According to the data published by Spitogatos.gr in 2019, an impressive increase in the price of sales and rentals in many neighborhoods of Athens was recorded. Moreover, in some regions prices were doubled.
Following there is a table on areas where the highest price increase was observed.
|Area||4th quarter 2019 (€/sq.m)||4th quarter 2018 (€/sq.m)||Growth percentage|
|Sporades Islands||1.739||1.429||21.7 %|
|Piraeus Suburbs||1.112||1.000||11.2 %|
|Rethymno, Crete||1.444||1.300||11.1 %|
|Athens centre||1.549||1.400||10.7 %|
The highest average selling prices in 2019 were observed in Athens-South (2.576 euros/ sq.m) and the Cyclades islands (2.500 euros/sq.m.).
The hard times currently appear to have passed for the real estate market. Real estate experts expect even better numbers in the coming months due to the suspension of VAT for three years. This measure will boost construction activity and sales in the real estate market and will affect 100,000 properties that have been “frozen” due to the crisis and high taxes.
Foreigners prefer to invest in the Greek real estate market, as housing prices remain attractive compared to other European countries, despite the growth that has been recorded over the past two years.