The areas of the country where sales prices are multiplying on a constant basis of residences have now surpassed, and in fact by far, the previous all-time high of the market, which was recorded during 2008. Nationwide there may still be a short distance from the highs of the period before the outbreak of the financial crisis, however this it does not apply to high demand areas, especially in its basin Attica and in popular tourist destinations of Cyclades.
According to data from the appraisal company Solum Property Solutions, in many parts of Attica, the average sale price of houses (newly built and second-hand) has now far exceeded the prices of 2008. This is especially true in the center of Athens, the northern and southern suburbs of Attica, while this trend is gradually expanding and towards Mesogeia, but also the western suburbs. However, the biggest increases are observed in the areas of southern suburbs and in the islands of the Cyclades, where demand from foreign investors has fueled significant investment in the development of new and luxury constructions, correspondingly increasing the average sale price.
So, based on Solum’s data, at Glyfada the average selling price today is 7,750 euros/sq.m. or almost 94% higher (93.75%) than the previous high of 2008, which had not exceeded 4,000 euros/sq.m. However, the “champions” are the tourist areas, with the Paro and the Mykonos to stand out. In Paros, the average selling price today is 195% higher, compared to 2008, reaching 6,500 euros/sq.m., compared to 2,200 euros/sq.m. And in Mykonos, the average price is 10,000 euros/sq.m., or 166% higher than the previous high of 2008.
According to Mr. Panos Charalambopoulos, head of Solum, although in the whole of Attica the sale prices of newly built houses are still falling, even marginally by only 2%-3% compared to 2008, in many areas this is not the case, as prices are much higher.
In the southern suburbs of Attica, the prices of new buildings are now 30% higher compared to 2008, while in the center of Athens they reach 20%.
In particular, in the southern suburbs the prices of new constructions are now 30% higher compared to 2008, in the center of Athens the increases reach 20% and in the northern suburbs prices are observed that are 20% higher compared to 2008. At the same time, as Mr. Charalambopoulos mentions, “areas where significant investments are being launched, such as pl. Omonia, or the center of Piraeus, where many foreign buyers are turning today, is expected to register significant increases in the next period. At the same time, we are now seeing asking prices of 7,000 euros/sq.m. in new constructions e.g. in Maroussi and 10,000 euros/sq.m. in Kifisia”.
Based on her data Bank of Greece, from the beginning of 2017, when the downward trend of housing prices ended and their recovery began, and until this year’s third quarter, prices in Attica have increased by 76%. They are now just 2.4% off their previous market high, set in the second quarter of 2008. Notably, prices rose at an annual rate of 17.3% in the first quarter of this year, while in the third quarter, the rate of increase was 12%. Overall, during this year’s nine months the average annual increase is 14.6%. Regarding especially the older ones real estate (over five years), the average sale price is 4.3% away from the 2008 level.
Overall, however, nationwide, the prices of new buildings are 7%-8% lower compared to 2008. According to what Ms. Valia Municipality, head of sales at Cerved Property Services, “the market is at different speeds. For example, in the western suburbs the prices of newly built houses are still 10%-12% lower than in 2008, while in Ilion the difference is 20%. In Eastern Attica, e.g. in Peania, a newly built house is sold today for 2,500 euros/sq.m., when in 2008 the corresponding price was 3,400 euros/sq.m., that is, today the purchase cost is 30% lower.”
According to Ms. Dimos, at the end of 2022 prices in the entire housing market (new-build and second-hand) were 12% lower than in 2010. Cerved Property Services estimates that values will continue to rise both in 2024 and in 2025, but with a milder rate of increase compared to recent months. In particular, in 2024 house sales prices are predicted to increase by 5.5% and in 2025 by 4.1%.
