Athens is a magnet for foreign real estate investors

Apartments in central Europe are among the least profitable investments, while the Mediterranean is at the top of preferences.

According to ProfitLevel research, Athens is the second best market in Europe for real estate investment. Specifically, in the Greek capital, it takes 17.6 years for a return on investment in an apartment bought for rent to occur.

Assessing the effectiveness of investment in apartments, ProfitLevel compared the purchase and rental prices in 17 attractive European capitals, with a particular focus on the Mediterranean and Central Europe, the regions where the investment campaign is unfolding.

The high rise in house prices during the pandemic is one of the indicators that has been affected by the change in the structure of supply and demand. One of the dominant factors was the demand for apartments as a long-term investment. Not all attractive European cities and coastal areas have experienced similar development.

Odds in 17 European capitals

The prices used are average prices for 2021 according to the European Central Bank. Valencia and Athens are at the top of the list with the highest scores, while Crete is also at a high level in 6th place.

Amortization period (return on investment) in years:

Valencia 17.06 Athens 17.66 Marseille 21.78 Barcelona 22.51 Canary Islands (Las Palmas) 23.00 Crete (Heraklion) 23.37 Krakow 25.19 Ljubljana 25.62 Bratislava 26.11 Milan 27.42 Budapest 29.67 Nice 29.71 Warsaw 30.76. 35.46 Vienna 37.16 Munich 38.00 Dubrovnik 42.38.

From 2017 to the present day, rents in many areas of Attica have increased by 50%. Today, according to spitogatos.gr, the average asking rent in Attica is 8 euros/sq.m., and in the center of Athens it is even higher, reaching 8.8 euros per sq.m. RE/MAX in a related report said that the annual growth of rents in the center of Athens averaged 11.6%.

In the first nine months of this year, capital inflows from abroad for the purchase of real estate were recorded for a total of 797.2 million euros, compared with 592 million euros in the corresponding period of 2020, according to BoG. This is an increase of 34.7% year on year. This year, a further strengthening of the “wave” of interest from foreign investors is expected, as a faster return on investment is predicted.

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