During the second quarter of the year, the strongly upward trend of the asking prices for the sale and rental of houses in the Attica basin was maintained, even though, as real estate sources report, the volume of sales has decreased compared to last year, precisely because of the high prices.
During the second quarter, the average asking price for the sale of houses was 2,410 euros/sq.m., against 2,143 euros/sq.m. in the corresponding period of 2023, an increase of 12.45%. During the first quarter, the rate of increase in sales prices had risen to 13.5% to 2,350 euros/sq.m.
Factors in the real estate market estimate that the “rally” of prices is not only not going to be “stopped”, but it is likely that it will strengthen even more in the coming months, especially if the required consent from the E.U. is secured. (and therefore the related funds) to “run” the next round of the “My Home” program. Already, in recent days, many owners have rushed to further increase the asking prices of their properties, due to the expectation of securing a higher price , precisely because of the assessment that demand will increase significantly during the second half of the year.
Already, however, the values have “taken off” in many areas. For example, in Piraeus, an annual increase of 28.9% is observed, with the average sale price reaching 2,471 euros/sq.m. Accordingly, prices in the suburbs of Piraeus have also increased by 23.6%, resulting in 1,931 euros/sq.m. An important role in this vertical increase has been played by the great demand due to the Golden Visa program, as Piraeus is one of the few regions of Attica that have significant growth prospects and at the same time, the minimum investment limit remains at 250,000 euros, until they start that the new limits of 800,000 euros apply from September 1 onwards.
Rents also remain very high
A similar picture can be seen with regard to house rental prices. During the second quarter, the average asking price was 9.85 euros/m2, surpassing any previous one. This is a 10% increase compared to the corresponding period last year, when the average asking rent in Attica was 8.96 euros/sq.m. In the first quarter of 2024, the average rent had increased by 13.5% annually, 9.6 euros/sq.m.
It is worth noting that in the areas of high demand, such as the center of Athens, the northern and southern suburbs, but now also Piraeus, the average asking rent now exceeds 10 euros/sq.m. Thus, for the lease of a family property of 100 sq.m. between 1,000 and 1,250 euros are required on average on a monthly basis.
Property market sources point out that unless there is some diversification (e.g. through rising incomes and a reduction in the accuracy wave, especially in the food market), it is likely that in the coming months there will be a wave of tenant defaults, which will not they can now meet their obligations. Still others warn that if a landlord tries to collect the maximum rent possible, he is also exposed to a higher risk from strategic defaulters, that is, people who sign leases with the intention of leaving unpaid rent and bills in the first place.