February 8, 2023

Athens News

News in English from Greece

More expensive but sought-after green houses in Athens

Houses with high energy efficiency have become “popular” despite their comparatively higher cost. In particular, the number of homes sold in the top two efficiency categories of the energy certificate has decreased by 30% over the past two years, namely from the third quarter of 2020 to the third quarter of this year.

According to data compiled by the online classifieds network Spitogatos.gr and processed by the analytics department Spitogatos Insights, the share of “green” homes now stands at 26% of all properties sold, up from 56% two years ago.

In contrast, there was a 25% increase in the number of less efficient homes, as evidenced by an increase in listings for homes in the bottom three energy certificate categories. Today, the share of such objects reaches 31% of the total, compared with 6% two years ago. Of course, this development is also indicative of a diversification in the mix of real estate for sale, as in the last two years many owners have decided to put their old properties up for sale to take advantage of the price increases that have occurred. For example, two years ago asking prices for this property averaged 1,670 euros/sq. m, and today they reach 1991 euro/sq. m, which is 19% more.

Houses with high energy efficiency are noticeably more expensive

Category
energy certificate

Average offer price
(in EUR/sq.m.)

Average asking rental price
(in EUR/sq.m.)

A+

4494

12

AND

3704

11.6

B+

3450

11.3

B

3059

11.2

With

2734

10.6

D

2430

10.2

E

2.191

9.7

G

1970

9.3

H

1823

9.6

The difference between superior and inferior

2671

euro/sq.m.

2.4 thousand euros/sq.m.

Real estate prices for sale/rent, depending on its energy efficiency

Districts

Categories
A+, A
FOR SALE-
FOR RENT

Categories
B+, B, C, D
SALE
RENT

CATEGORIES
E, G H
FOR SALE – RENT

Average Asking Price SALE
(RENTAL) (in EUR/sq.m.)

Southern suburbs

40% – 14%

41% – 61%

19% – 25%

3935 (11.6)

Northern suburbs

28% – 14%

51% – 68%

21% – 18%

2960 (10.8)

Center of Athens

11% – 8%

38% – 45%

52% – 47%

2137 (9.7)

Eastern suburbs

23% – 14%

59% – 69%

18% – 17%

2003 (7.9)

Western suburbs

19% – 10%

47% – 59%

34% – 31%

1824 (7.6)

However, a significant increase in energy efficient facilities has also been recorded, most of which were built recently or a few years ago. In particular, if two years ago the average asking price was 3311 euro/sq. m, then today it is 4100 euro/sq. m, an increase of nearly 24%. In addition to high demand, another reason for this growth lies in the revaluation of building materials, which led to an increase in construction costs.

The southern suburbs account for 40% of the most energy efficient homes, followed by the northern suburbs at 28%.

However, the high cost does not seem to have a negative impact on demand, as energy efficient properties are being consumed 2.2 months or 28% faster than lower tier properties.

In particular, according to an analysis by Spitogatos Insights, properties in the highest category (A+) are sold in an average of 5.6 months, compared to 7.8 months required for properties in the lowest energy efficiency category. According to real estate leaders, the energy crisis and market recovery has made the buying public much more aware of energy efficiency issues in housing, allowing owners and sellers of such properties to take advantage of the current climate. On the contrary, in previous years, especially during the economic crisis, limited demand was directed mainly to the most affordable properties, without due attention to their energy efficiency rating. Thus, those owners who spent significant sums on the energy upgrades of their properties could not easily benefit from this through a higher sale price, as is the case today.

According to Spitogatos Insights, the southern suburbs are home to 40% of the most energy efficient homes, followed by the northern suburbs at 28%. It is also a clear indication of where the developers have invested, as most of these homes are new builds. By contrast, in the center of Athens, only 11% of homes for sale are highly energy efficient, while 52% are in the bottom three categories.

When it comes to renting real estate, the picture is similar. In particular, over the past two years, the percentage of “green” real estate has decreased by 42% and the percentage of real estate with a low level of energy efficiency has increased by 25%. As a result, their share currently stands at 31%, while the share of high-performance facilities is only 11%. However, the difference in asking rent is not as big (as seen in the market), as green properties are currently rented out for an average of 12 euros/sqm, compared to 9.6 euros/sqm. m. for objects in the lowest category. Similarly, it takes almost two months to find a tenant for a property in the upper class, compared to 2.3 months for properties in the lower class.



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