Demand for high-end real estate and hyperlocal developments generally determine the data in the real estate market.

In particular, with regard to high-end real estate, according to converging research estimates that see the light of day, they are in aimed at Greek and foreign investors but also citizens having significantly raised the prices in the specific sector, as the stock of housing is running out and the demand significantly falls short of the supply.

The specifications of the properties in this category are characterized both by the area they are located, their square footage, the year they were built and by their technical characteristics (energy upgraded with integrated all modern technologies and features).

It is characteristic that the development of the high-end real estate market is what gave impetus to the real estate market in general both in 2022 and 2023 in our country despite any challenges that have appeared at the international level, according to the latest report of the Bank of Greece.

At the same time, the developments of a hyperlocal nature combined with the development of important infrastructure projects in Athens, Thessaloniki and the region create new data in the real estate market, which is also highlighted in the recent report of the Bank of Greece.

The growing interest in green sustainable development and its incorporation, in several cases, into the corporate policy of large companies has already given impetus to the development of new high-end properties and will gradually lead to the movement of users towards them.

The developments of a hyperlocal nature, especially in the Athenian Riviera, with the largest urban renewal in Europe as a focus, which is in full progress in Hellinikon, with the projects having taken the path of traditions, are also gathering the interest of the international media, which are mentioned in high demand for pre-sales of properties since the start of the project. A fact that has already been translated into practice as the existing stock for disposal which has all the characteristics of high specification and green development in Greek is already sold out.

There is a big price difference between luxury and standard summer homes.

At the same time, the demand for luxury homes, especially from foreign investors, has soared, creating large differences in selling prices compared to a typical summer residence.

According to the latest GEOAXIS Summer Vacation Homes Observatory 2023, which refers to summer homes for the islands of Mykonos, Paros, Santorini, Serifos and Kea, an increase in the median asking prices of summer vacation homes is recorded for the fifth consecutive year.

The difference in median demand prices between luxury and standard homes is particularly significant, since in Mykonos and Santorini a luxury home can cost up to 5.5 times more than a standard summer home, while in Serifos the corresponding index is 2. 3 times.

As mentioned in the survey, the market for luxury homes is estimated to occupy approximately 5-15% of the total pie, depending on the island, and is aimed mainly at buyers outside of Greece who, looking for special properties, are willing to pay significant premiums.

Compared to last year, there is a horizontal increase in asking sales prices at a median price of 3.4% for all five islands.

In terms of surface area, the largest summer homes are recorded in Paros and Mykonos with a median surface area of ​​262sqm and 240sqm respectively. On the remaining three islands, the median surfaces range between 110 – 160 sq m. The median age of the structures on the market in all the islands is over 15 years.

Demand also for properties of lower technical specifications

However, the low supply of modern real estate gradually leads to the spread of price increases to properties of lower technical specifications, as the Central Bank of Greece reports converging estimates of experts from the real estate sector.

However, it should be noted that simultaneously with the increase in the prices of properties of lower specifications, the cost of a radical renovation of properties of this category also increases, which now starts at 800 euros per sq.m in Athens and reaches much higher levels depending on the options of each buyer, as the prices of raw materials have increased significantly during the last two years. The prices of a radical renovation in the region start from around 500 euros per square meter. With the “Save” programs, many of the costs of a radical renovation that also includes energy upgrades are subsidized, with the result that the final cost per square meter is reduced to lower levels for a significant number of citizens.

More generally, it is estimated that investment interest in Greece and internationally is directed towards sustainable investments and towards properties with lower operating costs, greater flexibility and quality levels that will ensure the generation of income and capital gains for a long time horizon.