It is expected that the center of Athens, the western suburbs and part of the areas around Piraeus will attract the attention of young couples who want to purchase their first home through the “Σπίτι μου” program.
On the contrary, in the northern, southern and eastern suburbs of Attica, it is currently extremely difficult to find real estate that can be purchased under this program. According to real estate market operators, always there is a fear of any sharp revaluation of houses for sale precisely because of the increase in demandwhich will be triggered by an increase in buying interest from eligible borrowers of the program, the purpose of which is to subsidize the interest rate on a mortgage loan.
Today, taking into account the increase in prices and interest rates, it is considered difficult to obtain loans in the amount of 200,000 euros. On the contrary, it is assumed that a more realistic “ceiling” would be amounts of around 150,000 euros.
It is expected that most of the demand will be in the center of Athens, the western suburbs and Piraeus. Based on these data, there are currently around 9,500 listings for apartments in the center of Athens with asking prices up to 150,000 euros and area up to 150 sq.m. In most cases, these are real estate with an area of up to 100 sq.m. At the same time, the better the location and individual characteristics of the object, the more limited its living area.
In this context most of the options apply to apartments with an area of 65-85 sq.m.. If we evaluate the sales data in 2022 by the RE / MAX office network, then for 150,000 euros you can buy an apartment of 94 sq.m. in Neo Kozmos area, 111 sq.m. in Kipseli and 88 sq.m. in Abelokipi. Accordingly, you can get a loan for an apartment of 75 sq.m. in Nea Smyrni and 62 sq.m. in P. Faliro.
However, in 2022, the average price increase in Attica reached 13%, and in the fourth quarter, the increase was 15.2%. It means that the area of apartments that can be purchased today (compared to 2021) has decreased by about 10 sq.m. In this context, it is expected that the program may be more successful in cities in the region where prices are lower than in Athens and Thessaloniki.
For example, the average asking price in the center of Athens (according to the Spitogatos real estate index) is 1775 EUR/sq.m. at the end of 2022. In Achaia, the corresponding cost does not exceed 1050 euros/sq.m., in Heraklion on Crete 1375 euros/sq.m., and in Evia 1200 euros/sq.m.
Data analysis shows that houses for sale in Attica, with an area of 75-150 sq.m. and worth up to 200,000 euros, account for 60% of all properties sold in the center of Athens, and 74% of the total in the western suburbs.
Also in Piraeus, 59% of available properties qualify for the program. On the contrary, in the southern suburbs only 19% of properties meet these criteria, in the eastern suburbs – 38%, and in the northern suburbs – only 5%.
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