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Real estate: Rally without end for housing prices


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What does the Apartment Value Observatory report say?

The housing market seems to be behaving after the pandemic with a “spring” that was waiting to be released. Defying high inflation, the energy crisis and of course the war on Ukrainehome sale prices have seen a very large increase over the last 12 months.

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In accordance with Apartment Values ​​Observatoryedited by Geoaxis Property & Valuation Services, a company of certified real estate appraisers, the annual price increase in selected areas of the Attica basin (Ampelokipoi, Marousi, P. Faliro, Peristeri and Cholargos) reached 25% for newly built apartments and 24 .34% for apartments older than 35 years.

Compared to 2019, i.e. before the outbreak of the pandemic, the average increase of newly built apartments is 35.4% and of older apartments at 32.2%, notes a Kathimerini report.

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The biggest increase is registered by the older apartments in the area of ​​Cholargos with an impressive 40.6%, as the average selling price now amounts to almost 2,000 euros/sq.m. (1,985 euros/sq.m.) from 1,411 euros/sq.m. in 2019. Newly built apartments in the Ampelokipi area also recorded a very large increase with 38.5% to 2,500 euros/sq.m. from 1,800 euros/sq.m. Three years ago.

In relation to the corresponding quarter of 2021, in newly built apartments the biggest increase is found in Cholargos with 28%, as the average price reaches 3,565 euros/sq.m., from 2,785 euros/sq.m. In Ampelokipi the average annual increase was 25.5%, in Peristeri 25.6% and in Marousi 26%. In the older apartments, the annual increase was 32.4% in Cholargos, 27% in Marousi and 26.7% in Ampelokipi.

According to Yiannis Xylas, head of Geoaxis, “the increases recorded by the Value Observatory this year are due to the fact that the average supply of apartments with characteristics close to an average property has been limited. That is, we notice that there has been an increase in the listings of high-rise, renovated, or newly built properties with high quality standards compared to the recent past. This fact differentiates the offer with better quality properties, with the result that the prices are considerably higher.”

According to Mr. Xylas, another reason that differentiates the picture of the market this year lies in the fact that several properties are no longer available for sale, as their owners choose another way of exploitation, either through short-term leases or through medium-term leases, e.g. for six months, renting out their property to companies that exploit real estate in this way, such as e.g. the Blueground.

However, according to Mr. Xylas, the “rally” of housing sales prices is not going to last. “Such a strong increase in prices will slow down in the coming months, due to shrinking demand due to the increase in lending rates, the galloping price of energy and the increase in construction materials – renovation. These factors will lead potential buyers to wait.” It should be noted that especially in the case of newly built properties, the high construction costs continue to “produce” a generation of houses with a particularly high price, which is doubtful whether it will be possible to be absorbed in its entirety by the market. However, so far there does not seem to be any issue, given that a sufficient number of interested buyers, both Greek and foreign, have accumulated, while at the same time there is also a significant deficit. the smallest increments | in age and quality construction.

Another characteristic of the demand concerns the desire of more interested parties to acquire a larger property. After the pandemic, most companies are now implementing a hybrid work model, with telecommuting and in-office shift work as a key element. Given that the number of workers who work at home one or two days a week has increased significantly, the need to create an additional workplace also arises. In addition, this development means that home does not have to be very close to work, precisely because of the reduction in commuting days and hours. These data differentiate the demand and are expected to be reflected in the prices in the coming years.

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I have worked in the news industry for over 10 years and have been an author at News Bulletin 247 for the past 5 years. I mostly cover technology news and enjoy writing about the latest gadgets and devices. I am also a huge fan of music and enjoy attending live concerts whenever possible.

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