Apartment Prices in Greece Increase Due to Demand

Real estate prices in Greece jumped by 9.1 percent in the last quarter of 2021, driven by strong demand in Athens and Thessaloniki, data from the Bank of Greece shows.

“According to data collected from credit institutions, apartment prices (in nominal terms) are estimated to have increased on average by 9.1% year-on-year in the fourth quarter of 2021, while in 2021 apartment prices increased by an average annual rate of 7.1%, compared with an average increase of 4.5% in 2020,” the Bank of Greece said in a statement.

Apartment prices in Athens raced ahead 10.5 percent in the last quarter of the year and 8.3 percent in Thessaloniki.

More specifically, in the fourth quarter of 2021 the year-on-year rate of increase in prices was 9.8% for new apartments (up to 5 years old) and 8.6% for old apartments (over 5 years old). 

For 2021, prices of new apartments increased on average by 7.4%, against an increase of 4.9% in 2020, whereas prices of old apartments increased by 6.9% in 2021, against an increase of 4.2% in 2020.

Broken down by region, in the fourth quarter of 2021 apartment prices increased year-on-year by 10.5% in Athens, 8.3% in Thessaloniki and other cities and 7.1% in other areas of Greece. For 2021 as a whole, prices increased on average by 9.1%, 6.9%, 5.4% and 4.6% respectively in the above-mentioned areas. Finally, as regards all urban areas of the country, in the fourth quarter of 2021 apartment prices increased by 9.7% compared to the fourth quarter of 2020, while for 2021 they increased at an average annual rate of 7.5%.

This article was first published here. 

For more Real Estate News & Views on Greece and Europe’s South, head to The Greek Guru.

*Image courtesy of Sotheby’s Greece 

Property Deals in Greece Set to Go Online

The process required to transfer the ownership of properties in Greece is set to go online as of October, senior government officials say.

The Digital Governance Ministry has tabled in parliament a bill to shift the procedures online- in a bid to gain competitiveness of the country’s real estate sector and help draw foreign investment to the residential housing sector.

With the help of a notary, property deals will be done online via gov.gr that will hook up the different government services involved, such as the tax office and the national cadastre.

Speaking in parliament, Digital Governance Deputy Minister Giorgos Stilios, who is overseeing the implementation of the country’s national cadaster (Greek land registry), said that “now the transfer will take place in the notary’s office without the need to obtain 17 documents from 11 different public services.

“We are ready, and technically, this will apply to 100 percent of real estate in Greece, in two months,” he said.

Stilios also announced that “the cadastre (ktimatologio) will be 90 percent complete by 2023, two years earlier than announced,” adding that today 2 percent of owners in different areas are holding up procedures for different reasons.

With this bill, the two percent will now stop blocking everyone else from being able to access dozens of digital services and facilities, added the Deputy Minister.

This article was first published here. 

For more Real Estate News & Views on Greece and Europe’s South, head to The Greek Guru.

*Image courtesy of Sotheby’s 

Pandemic Dampens Real Estate in Greece but Holiday Homes Still Shine  

The Covid-19 pandemic has pulled the brake on Greece’s real estate market, freezing deals and prices on housing, but pockets of demand have emerged from foreign buyers looking at property on Greek soil.

Interest from investors located mainly in European countries, led by UK nationals, has increased in recent months as they search for property either for investment purposes or to be used as a holiday home, real estate agents report.

Demand has been focusing mostly on homes on the Athens Riviera, the southern beach stretch running from Piraeus to Sounio, as well as islands such as Mykonos, Crete, Corfu, and Paros.

Homes worth 7 to 10 million euros are on investor radars but the majority of enquiries concern properties in the range of 500,000 to 1.5 million euros, Christos Mourdoukoutas, sales analyst at Algean Property, tells IN+SIGHTS GREECE.

“They are mainly looking for a place in a prime location that is close to international airports – popular holiday destinations and the Athenian Riviera – which could offer a good yield too, since their interest is usually related with investment purposes,” he says.

Growth in Greece’s real estate prices had been growing steadily, recovering from a ten-year slump, when the pandemic hit. Data from the Bank of Greece, the country’s central bank, showed that prices last year jumped 7.3 percent and then by an annual pace of 6.9 percent in the first three months of this year.

Since then, local buyers and home owners have adopted a wait-and-see stance due to the uncertainty caused by the pandemic and the recession at hand. Insights Greece - Pandemic Dampens Real Estate in Greece but Holiday Homes Still Shine  

Due to travel restrictions, interest in buying Greek assets comes mostly from nearby European nations as investors from further away are still having a hard time getting to the country. This is a trend seen globally, with real estate investors currently preferring their own regions due to travel restrictions.

Market officials say that buyers from China, who have been a main source of foreign investment in Greek homes in recent years, are still showing strong interest in Greek homes.

A key reason why buyers remain keen on Greece is that prices in the country remain well below levels seen in other European countries. Additionally, yields offered on homes on islands, such as Mykonos, exceed the 8 percent mark, ranking among the highest in Europe, according to data provided by Algean Property.

The country’s successful handling of the pandemic over the lockown period earlier this year boosted its appeal as a safe destination, with homes offering privacy and large areas sought after.

“We see that more than half of those interested have accelerated their decisions and want to invest in a private vacation and place for relaxation. For many, the pandemic has led to a review of their priorities, resulting in them speeding up decisions to leave their jobs and are now seek to buy a luxury property for the rest of their lives,” Savvas Savvaidis, president and CEO of Greece Sotheby’s International Realty told Kathimerini.

In March, Sotheby’s handled one of the biggest deals to take place in the residential market in Greece in recent years. An Australian business owner purchased a villa in Corfu for 12 million euros, with the sale going ahead normally despite the lockdown period. It is Sotheby’s third sale above 10 million euros in Greece in the last year.

*Images courtesy of  Sotheby’s International Realty