The growth rate of asking sales and rental prices has accelerated of residences in Attica, during the fourth quarter of 2023, a sign of the consistently high expectations of property owners, although, as more and more brokers are now pointing out, demand is showing signs of “fatigue” in recent months. Specifically, according to the index data Spitogatos Property Index (SPI), in Attica an annual increase of 14.8% in house sale prices is recorded, compared to an increase of 13.6% in the third quarter. The average selling price is 2,293 euros/sq.m., compared to 2,230 euros/sq.m. which was during the immediately preceding quarter.
Regarding the asking rental prices, in the fourth quarter an increase of 9.9% is recorded compared to the corresponding period of 2022. It is recalled that in the third quarter the average rental price had registered an annual increase of 8.2%. Now, the average asking rent is 9.4 euros/sq.m., from 9.25 euros/sq.m. during the third quarter of 2023.
Among the areas with the biggest increases in sales prices, stands out with a significant difference o Piraeus.
Based on SPI data, average annual growth in the fourth quarter shot up to 23.2%, with the average asking price now reaching €2,175/sq.m, up from €1,765/sq.m. a year ago.
In the suburbs of Piraeus the average increase is even greater with 25.2% and the average asking price reaching 1,800 euros/sq.m., against 1,433 euros/sq.m. during the corresponding quarter last year.
The wider area of Piraeus has become the new “host” for investors from third countries, who are interested in acquiring residence permits through the relevant program, as it still offers the relevant possibility with an investment limit of 250,000 euros. On the other hand, in the center of Athens, in the northern and southern suburbs, the minimum investment limit has now doubled to 500,000 euros, directing interested investors to other areas, especially Piraeus.
Now in Attica the average asking price for the sale of houses has been set at 2,293 euros/sq.m.
However, as reported by brokers, as well as offices specializing in investment immigration programs, this sharp increase in asking prices is not realistic. Many investors are already turning to other areas, as many of the properties offered for sale do not meet these values and do not have special investment characteristics, as e.g. it is not easy to exploit them as short-term rental accommodation, as was often the case with the properties acquired in previous years in the center of Athens.
As far as rents are concerned, the fourth quarter of 2023 saw a stabilization of prices, at the very high level of the previous months.
In particular, the average asking rental price in its center of Athens amounted to 10 euros/sq.m., increased by 10.6% compared to the corresponding period of 2022. In the northern suburbs the average asking price reached 10.77 euros/sq.m. from 10 euros/sq.m., marking an annual increase of 7.7%.
The highest prices remain at southern suburbs, with 12 euros/sq.m., from 10.86 euros/sq.m., recording an annual increase of 10.5%. The biggest increase is found in Piraeus (center), where the average asking rental price has increased by 17.4%, to 9.6 euros/sq.m. from 8.18 euros/sq.m.
Executives of the real estate market estimate that they will need to be done in the near future price correctionsespecially with regard to the asking sales prices, as in recent months there has been a significant lag in reaching purchase and sale agreements.
As real estate sources point out, many owners have excessively high demands in relation to the real value of their homes and are not willing to budge or negotiate to facilitate an agreement.
At the same time the interested parties, especially those coming from the domestic market, are not willing to pay too high a price, especially after the significant increase in interest rates during the last year.
