The most attractive metropolitan area in terms of real estate… Piraeus

The metro line, recently opened in this port area of ​​greater Athens, dramatically increases the value of Piraeus real estate and opens up investment opportunities for the construction of new housing.

“The arrival of the metro in the center of Piraeus, together with the tram line and ISAP brought up a couple of years ago, significantly increases the logistical capabilities of the country’s largest port with the rest of the metropolitan area. This will affect the development of the area and the housing market in the coming years.” The phrase belongs to a real estate professional, with the important note that it was said more than two years ago, when the Piraeus Port Plaza office complex (former Papastratos Tobacco Factory) in Agios Dionysios, in the center of Piraeus, was already on its way to completion. Today, a few days after the official opening of the three new stations of line 3 of the metro in Piraeus, it seems that this assessment is fully confirmed and reflected in the numbers.

For example, according to data collected by the online ad network Spitogatos.gr, in the center of Piraeus, near the port, the average sale price of houses in the third quarter of this year was 1630 euros/sq.m., which is 22% more than two years ago (and 12% more than last year). Accordingly, in Kaminia and Palea Kokkinia, the asking price reached 1260 euros/sq.m., which is 41% more than before the third quarter of 2020, and compared to last year, the increase reaches 26%. In Keratsini, the growth compared to 2020 is 20%, while in Tamburia and Agia Sophia, prices increased by 14.3%. In Trapezzoni, an increase In total, the average asking price in nine different areas of Piraeus is now 1540 euros/sq.m., up from 1314 euros/sq.m. two years ago, an increase of 17%.

Over the past two years, real estate sales prices in nine districts of Piraeus have increased by 17%.

Leading companies in the market note that this growth could have been much higher if the pandemic had not intervened. Also an important factor is that the new metro stations cover the area with low quality building stock, which needs renovation, while there are no high-quality new buildings that could attract new residents. Likewise, in many areas of the city there are abandoned and empty properties, former warehouses or factories that have not been used for decades, like the Piraeus tower.

This situation is expected to provide significant investment opportunities for developers and residential builders who are already looking to enter the Piraeus market due to the arrival of the Metro. “When we purchased the Papastratos premises in 2016, almost seven years ago, the metro was still something of a theory, especially when a nearby station would open. Today, I estimate that three new stations will change traffic in the city from the point vision of housing that we will see in the next 12-18 months” – Dimitris Andriopoulos, managing director of Dimand Real Estate.

The nearby area of ​​Agios Dionisios is expected to attract many home developers, he said, as it has seen a steady rise in prices since 2018 that will continue into the coming period. It is expected that a significant improvement in the connection of the center of Piraeus with the Athenian Riviera, Elliniko, the center of Athens and the airport will work in this direction. In addition, more than 10,000 workers now travel to the area daily and work in the new office buildings. This number will increase even more after the opening of the Piraeus Tower, in about 12 months, since most of it is dedicated to offices. Indeed, given that this audience will also have a higher income level, it is expected that the existing stock of real estate for sale or rent should also be updated.

The new demand in Piraeus is largely related to properties that currently do not exist (in the area), at least with characteristics to meet the demand. In this context, companies such as Dimand and Premia Properties SA are planning new moves in the wider region. Dimand Real Estate is in the final stages of obtaining a license to build two new serviced apartment complexes in the area of ​​Agios Dionisios in Piraeus. These are objects with a total area of ​​4500 sq.m. and 2000 sq.m., “Our goal is to create new demand in the area, both from the employees of the companies that are currently operating in Agios Dionisios, and from individuals who are interested in this in connection with the operation of the new metro station, which is very close,” says Mr. Andriopoulos, CEO of Dimand.

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