House prices in marked rise during Q2
The residential market in Greece is picking up again, as the return of the economy to some semblance of normality appears to have whet the appetite of owners who have raised their asking prices for sales and rentals in most areas of Athens and Thessaloniki, according to the Spitogatos Property Index (SPI).
The instrument compiled by online ads portal Spitogatos.gr showed that sellers’ asking prices in Attica rose in the second quarter of 2021 by up to 10.1% year-on-year: That jump is recorded in the suburbs of Piraeus, with an average asking rate of 1,270 euros per square meter, against €1,155/sq.m. a year earlier. It also showed a quarterly rise of 1.6%.
Both the northern and the western suburbs of the capital observed price growth of 7.9% in Q2, reaching €2,430/sq.m. and €1,407/sq.m. respectively. The southern suburbs, however, remained the most expensive corner of Attica, with an average asking rate of €2,766/sq.m. for sales, up 6.4% on 2020.
The center of Piraeus saw 6.7% growth to €1,540/sq.m. while asking prices in the suburbs around Thessaloniki rose to €1,200/sq.m. In Thessaloniki proper asking rates expanded 5.9% to €1,563/sq.m.
On a quarterly basis asking prices in the center of Athens have increased 1.4% to €1,593/sq.m. and in Thessaloniki 2% to €1,545/sq.m.
According to a recent Bank of Greece report on the country’s monetary policy, “the first five months of 2021 – especially the last couple of months – signaled the start of a new period for the property market, during which the pandemic’s impact and the new conditions are being assessed. Despite the reservations and anticipatory stance in the market since the beginning of the health crisis, the constantly positive expectations for the containment of the pandemic, the recovery of tourism and the restoration of demand for investments from abroad have contributed to the resilience of prices, both in terms of residential and commercial property.”
The rental market has also witnessed growth in rates, both on an annual and quarterly basis. For instance, in the northern suburbs of the capital, asking rates averaged at €9.17/sq.m. in Q2, up 8.4 from April-June 2020 and 4.6% from January-March 2021.