The purchase prices of plots of land in the Attica basin as well as in the country’s major urban centers are on the rise, but approaching the point where this upward cycle closes.

At the same time, the changes in the construction sector are stormy, while regarding the costs, the trends are mixed. Stabilization in the area of ​​material prices, relative to what we have experienced in the last 3 years, but an increase in labor costs.

In particular, according to Giannis Xylas, managing director of Geoaxis Property & Valuation Services, the systematic demand in recent years for plots of land that can accommodate housing in the areas of its basin Attica and in large urban centers, combined with the lower supply as there is not enough vacant land in these areas, keep prices at high levels.

As he estimates, with his statements to APE.MEP, Mr. Xylas, prices will continue to be maintained at high levels as long as there is a need for newly built homes. The time horizon in which the corrective decline will take place at a negative rate cannot yet be estimated and may begin in the next 12 to 24 months, Mr. Xylas estimates, on the occasion of the publication of the GEOAXIS research

Land – Prices and trends

As concluded in the GEOAXIS research, the rise in values ​​(in five areas examined in the Attica basin) is expected to continue for the next 12 months, but with less intensity.

Between the 2nd quarter of 2024 and the 2nd quarter of 2023 a significant increase of median asking selling prices plots of land (in the regions Ampelokipoi, Marousi, P. Faliro, Peristeri and Holargo) to an average of its class 8.97% and for the five local markets monitored by the GEOAXIS Observatory.

In more detail:

  • the largest increase (11.11%) is recorded by plots with S.D. 0.8 in Maroussiwith the median potential sale price in the 2nd quarter of 2024 being 900 euros/sqm, up from 810 euros/sqm last year.
  • Next is his area P. Faliro with the plots with S.D. 1.4 to also register an increase of 10.90% (median potential sale price in the 2nd quarter of 2024 at 1,547 euros/sqm, from 1,395 euros/sqm).
  • Next is his area Peristeriou where plots with S.D. 1.8 record an increase of 7.80% (median potential sale price in the 2nd quarter of 2024 at 912 euros/m2 from 846 euros/m2) and
  • the Municipality of Athens region Vineyards where plots with S.D. 3.6 register an increase of 7.58% (median potential sale price in the 2nd quarter of 2024 at 2,455 euros/sqm from 2,282 euros/sqm).
  • Finally, an increase seems to be registered in his area Holargou with plots of land with S.D. 1.2 to increase by 7.47% (median potential sale price in the 2nd quarter of 2024 at 1.209 euros/sq.m. from 1.125 euros/sq.m.).

The values ​​mentioned in the Observatory are medians and refer to completely typical plots. It is obvious that plots with special characteristics in terms of location, projection, view and surface are at the upper limit of the sample, with values ​​many times up to 25% higher.

With reference to size of plots, as expected, Ampelokipoi (165 sq m) and Peristeri (200 sq m) record smaller plots compared to Cholargos (441 sq m), Marousi (351 sq m) and Paleo Faliro (300 sq m).

It is evident that undeveloped plots of land of one acre are now hard to find, while in most cases these plots have old houses or other structures within them. Land values ​​are at their highest levels in a decade after asking sales prices increased by an average of 29.21% over 2015 across the five local markets.

Counter-provision of plots of land in Attica

The cycle of high building activity that opened after 2018, reports GEOAXIS, continues, as the demand for undeveloped plots and/or plots with old buildings for the construction of newly built apartments knows bloom.

Those landowners who retained their plots after 2006 are still the big losers, as the total cost of erecting a building on a plot with consideration increased significantly with the imposition of VAT from 1/1/2006 on deliveries of newly built properties, while the enforcement of the ENFIA burdened each design accordingly.

In general, compared to what was in force until 31/12/2005, the landlord will receive today almost a small apartment less, in any case of a plot larger than 1,000 sq.m. The image of the compensation remained almost the same during the previous 12 months, while movements to compress the rate are expected, especially after the decisions of the Council of Ministers regarding the heights of the buildings (293/2024 and 310/2024 decisions of the 5th Department). The decisions also deem unconstitutional the exemption from the building factor of bay windows (balconies), attics, 50% of the basement, etc. effectively limiting the ability of the builders for additional square meters.

Construction costs for a residential building in Attica – The challenges and changes

Where are the construction costs today?

The cost for an Energy Class A residential building in Attica is 1,900 euros/sq.m (+VAT), while for a corresponding Energy Class A+ it is 2,100 euros/sq.m (+VAT).

Accordingly, the cost for a more premium construction can exceed 3,000 euros/sq.m (+VAT), reports Iosif Arabatzis, founder and managing director of Epicycles Technical Real Estate.

In response to a question about the challenges of the construction sector and in particular about the course of their costs, Mr. Arambatzis states that the costs of materials have now stabilized, in relation to what we have experienced in the last 3 years, while small increases have been observed in the last six months. What is a challenge right now is managing the big rise in labor costs. I would dare to say that the prices of daily wages are increasing like a stock market product, he says characteristically.

Briefly speaking about the changes compared to five years ago in the construction of residential buildings in Attica, the managing director of EPIKYKLOS, which is active in the construction of residential buildings and renovations with more than 800 projects during the last 15 years, mentions among other things that the the cost of construction is 40% higher and privileges are given to the NOK with the aim of energy upgrading, He also points out that a watertight frame is used in the construction of buildings, new technologies have been developed in investment materials, emphasis is placed on materials and machines with a low environmental footprint while it is now judged the electronic identity of the property is necessary, practices adopted by the company in its projects.