June 23, 2024

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Real estate: prices exceeded the 2008 record [πίνακας] – Financial postman

Real estate: prices exceeded the 2008 record [πίνακας] – Financial postman

The areas of Greece where house sale prices have now surpassed the previous historic market high, which was recorded during 2008, are constantly doubling.

Market experts’ expectations have been confirmed, as increasing demand and limited supply have given new upward momentum to the sale value of apartments. As a result, in some areas they have already surpassed their 2007 highs and are reaching 2008’s historic records.

This is the most expensive shopping street in the world – Ermou Place [γραφήματα]

Prices in March caught up to the prices of 2007-2008 for the first time, after an annual increase of 10.8%. It seems that the growth of the economy, the shortage of new properties, demand from abroad and inflation have returned prices to those levels, after many years of crisis in the real estate market.

According to data from the Bank of Greece, based on the age of the property, the annual rate of change in the prices of new apartments was 10.8% and that of old apartments was 10.1%.

Based on geographical location, the annual rate of change in apartment prices was 9.4% in Athens, 12.2% in Thessaloniki, 10.3% in other major cities, and 12.1% in the rest of the country.

Based on available provisional data, it is estimated that in the first quarter of 2024, apartment prices (in nominal terms) increased on average by 10.4% compared to the corresponding quarter of 2023. For 2023, apartment prices increased at an average rate An annual rate of 13.8% (adjusted figures), compared to an increase of 11.9% in 2022.

In more detail, the percentage of price increases in the first quarter of 2024 compared to the corresponding quarter of 2023 was 10.8% for new apartments, that is, up to 5 years old, and 10.1% for old apartments, that is, those that are more than 5 years old. Based on the revised data, the average annual rate of increase in prices for new apartments for the year 2023 reached 12.7%, compared to an increase of 12.5% ​​in 2022, while the average annual rate of increase for old apartments reached 14.5% in 2023. An increase of 11.6% in 2022.

From analyzing the data by geographical region, it appears that the increase in apartment prices in the first quarter of 2024 compared to the corresponding quarter of 2023 amounted to 9.4% in Athens, 12.2% in Thessaloniki, 10.3% in other major cities and 12.1%. . % in the rest of the country. For the whole of 2023, the increase in prices in the same regions compared to 2022 was 13.8%, 16.5%, 15.0% and 11.4%, respectively (revised figures). Finally, for all urban areas of the country, apartment prices in the first quarter of 2024 increased on average by 10.8% compared to the first quarter of 2023, while the average annual increase for 2023 reached 14.1% (adjusted figures).

Reasons for increases

An important factor in the rapid increase in sales prices is the ever-increasing cost of construction. The increase in construction costs has reached 50% – 60% in recent years.

Also in recent years, the required selling prices for plots of land and the required compensation percentage have increased.

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At the same time, investment opportunities in the real estate market have constituted an attraction for foreigners targeting residential and tourist properties.

It is worth noting that as of 2023 there is a Golden Visa investment “frenzy” by interested parties who want to secure real estate.