Evaluation of the Greek real estate market, whether carried out by domestic or international financial analysts and companies, is converging more than ever before, which suggests that “a new page has been turned.”
In a market that has experienced a ten-year crisis with job losses in general in all related industries, the picture has now changed dramatically. Based on data compiled by credit institutions and published by the Bank of Greece in the middle of the week, it is estimated that apartment prices in the third quarter of 2021 increased by 7.9% on average compared to the corresponding quarter of 2020. It is expected that in areas where infrastructure or reconstruction projects are underway, the price increases will be more significant.
Will this upward trend continue? Does this apply to all areas? If not, which ones will increase the most? Stavrula Wamvaka, president of the newdeal real estate group, says that we have entered an upward price curve in the last three years, like the rest of Europe. The situation in the real estate market slowed down during the first wave of the pandemic, but did not stop due to the central policy regarding liquidity and financial support of the population and business companies.
“On this new trajectory, we will see periods of more or less growth in property prices, which will depend on GDP growth, as well as other factors (taxes, international investment wave, golden visa, etc.),” says the president of newdeal real estate group.
Ms Wamvaka also adds that “the pricing policy will change in areas where infrastructure (eg metro construction) or construction (eg Elliniko) projects are underway. On the contrary, in areas that are less “fashionable” in the eyes of Greek and foreign investors, the price performance will be lower. At the same time, a new generation of new building appears on the market. Such a turn may also occur: prices for old real estate will be undervalued in some areas, while in others they will rise. In any case, however, there is no doubt that we will not return to the prices of a deep crisis, as in the previous period. “
Analysis of data by geographic regions shows that the growth in apartment prices in the third quarter of 2021, compared to the corresponding quarter of 2020, was:
9.8% in Athens, 8.7% in Thessaloniki, 5.9% in other large cities, 5.7% in other regions of the country.
According to the revised data, in the first and second quarters of 2021, the average annual growth in apartment prices was 6.7% and 8.3%, respectively, in Athens, 4.6% and 5.4% in Thessaloniki, 2.1%, 4.4 % in other large cities, as well as 1.3% and 3.6% in other parts of the country. For the entire 2020, the increase in prices in the same areas, compared to 2019, amounted to 7.8%, 5%, 0.2% and 1.8%, respectively.
In particular, the increase in prices in the third quarter of 2021, compared to the corresponding quarter of 2020, amounted to 7.6% for new apartments (buildings up to 5 years old) and 8.2% for old ones, that is, real estate built more than 5 years ago.
According to the updated data, in the first and second quarters of 2021, prices for new apartments increased by 4.5% and 6.2%, respectively, while prices for old apartments increased by 4.1% and 6.2%, compared to the corresponding quarters of 2020. For 2020, prices for new and old apartments grew by an average of 4.8% and 4.2%.
Finally, in all urban areas of the country in the third quarter of 2021, apartment prices increased by 8.3% compared to the third quarter of 2020. According to the revised data, in the first and second quarters of 2021, the corresponding CAGR in cities was 4.4% and 6.4%, while in 2020 the CAGR was 4.7%.
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