From 2018 until the third quarter of 2021, an increase is recorded of house prices by 30% -32% in Athens, by 21% -25% in Thessaloniki, by 9% -14% in other major cities and by 10% -16% in other parts of the country. This fact is a clear indication of the new upward cycle in which several areas have entered, but especially the two major urban centers of Athens and Thessaloniki.
Nevertheless, despite this significant rise in prices, homes remain cheaper by 22% to 35% (depending on the region) compared to the highest point they found in 2007, according to Babis Charalambopoulos, scientific advisor. of the real estate services company Solum Property Solutions.
In the new regularity of the real estate market, there are forces that push the market upwards and others that act in the opposite direction, according to Mr. Charalambopoulos. For example, on the one hand, there is an increased demand and therefore an upward trend in prices in the few new buildings, which in addition are usually in good places. The pandemic, on the other hand, has a serious impact on the economy, a development that does not allow a large percentage of the middle class to plan for the housing market and thus turn to rent.
In addition, although banks provide more mortgages, many remain reluctant because of the negative experience they have had with red loans. “We are in a transitional phase with two main trends, which guide prices either upwards or downwards. “These two trends will create a new price base, which will vary depending on the city, the location, the size of the property, its quality and condition, its age and other characteristics”, notes Mr. Charalambopoulos.
Demand is also recorded for older constructions, as long as they are in good locations and have the appropriate size and as long as the price is reasonable, given that the buyer will also allocate money for the modernization of the property, according to him. Also, housing in cities that will still have students will be in constant demand, as long as the number of students does not decrease.
Rising prices will continue to be observed in the sale prices of holiday homes in the internationally famous islands of the country, such as in Mykonos, Santorini, Rhodes, Corfu and Paros. Demand for cottages will be observed in other areas, such as. in Northern Greece, where there is buying interest from people from the Balkans.
In other coastal areas of the country there will continue to be demand for cottages or real estate that can be used through short-term leases from the British, Germans, Russians, Chinese, Israelis and Arabs. In this context, there is a steady stimulation of construction activity. From 2014 until this year, the increase reaches 90%. However, compared to 2007, when the real estate market was at its peak, the current rate of building permits remains lower by 69%.
Source: kathimerini.gr
