Massive discrepancy between properties for sale and rent
of properties listed for sale significantly outweighs those available for rent in areas with substantial housing inventory, data show, indicating a reluctance of homeowners to rent out their properties.
The trend, according to data from the Spitogatos.gr website, is most notable in the western suburbs of Athens, known for their affordability to a broad demographic.
The number of available rental homes in this area of Attica stands at just 867, a mere 8.3 percent of the corresponding properties listed for sale in the same area (10,358).
The trend persists across various regions. In the center of Athens, only 5,039 properties are listed for rent, compared to a substantial 32,268 properties that have been put up for sale. Similarly, in the southern suburbs, which boast the highest housing supply, 8,365 rental properties are available against 41,567 properties for sale.
The same pattern can be observed in the northern suburbs, where 5,610 rental properties are listed compared to 26,526 properties for sale.
In Piraeus, a mere 756 rental properties are available in contrast to 5,272 properties for sale, partly explaining the significant price hikes, coupled with increased foreign purchasing interest.
Thessaloniki in northern Greece exhibits a similar pattern, with 39,768 properties for sale and rental apartments not exceeding 8,893.
The low supply of rental properties occurs at a time when rental demand is at its highest peak in decades while factors such as high interest rates, diminished purchasing power, stringent credit requirements and elevated sales prices drive most Greeks toward renting.
According to Ilias Papageorgiadis, CEO of MORE Group, which has extensive experience in the real estate sector, the abundance of properties for sale compared to rentals stems from the loss of confidence among property owners regarding the profitability of long-term leasing.
Incentives
A recent nationwide survey conducted by Opinion Poll on behalf of MORE explored incentives required to reintegrate closed properties into the market. Respondents called for reduced income taxes on rents and of the ENFIA property tax, alongside measures ensuring better protection for property owners against delinquent tenants or damage to rented properties.
“Supply is obviously smaller as many property owners feel they are unprotected against problematic tenants and they call for stricter control and insurance,” Papageorgiadis says. “Expedited justice for rental disputes is also sought,” he says.
A potential solution involves establishing a specialized judicial body to handle evictions and property disputes, aiming to mitigate significant delays prevalent in the current system.
“If a tenant is a bad payer and they have a good lawyer, they can often extend their (free) presence for many months, maybe even over a year. At the same time, the property dispute resolution cases that stagnate in the courts are in the tens of thousands and deprive the market of valuable properties,” Papageorgiadis says.
He also sees a need for legislative regulations to enhance the protection of property owners against non-paying tenants. “If landlords fear they won't have a remedy for dealing with `problematic tenants,' they might opt to keep their properties vacant. Without addressing the backlog of pending court cases related to numerous properties, closures will persist,” he says.
The low supply of rental properties occurs at a time when factors such as high interest rates, diminished purchasing power, stringent credit requirements and elevated sales prices drive most
Greeks toward renting