Athens’ Southern Suburbs: Rental and property purchase prices continue to rise
The current state of rental and sale prices for residential properties in Athens, and the factors driving the significant increase in Piraeus
- 25/10/2024
The highest average selling price for homes was found in the southern suburbs of Athens, reaching €3,750 per square meter during the months of April, May, and June 2024. According to data from the real estate platform Spitogatos.gr, these suburbs continue to show an upward trend, but the increase is more moderate compared to previous periods. This rise is also lower than in other areas, such as central Athens, the western and eastern suburbs, and Piraeus, which is experiencing the largest price increase for properties.
The slower rate of price growth in the southern suburbs is due to significant increases that have already occurred in the past. While prices continue to rise, the rate of increase is now smaller. Specifically, in the second quarter of 2024, the southern suburbs saw a 6.8% increase in the average selling price of properties, reaching €3,750 per square meter, up from €3,511 per square meter during the same period in 2023.
Piraeus: Price Surge with a 28.9% Increase in Home Sales
In Piraeus, property prices have been rising quickly, reaching an average of €2,471 per square meter in the second quarter of this year, up from €1,917 per square meter during the same period in 2023. This marks a significant increase of 28.9%. The suburbs of Piraeus also experienced a notable rise, with prices increasing by 23.6% from €1,563 last year to €1,931 this year.
One key factor driving the sharp increase in prices is that Piraeus maintained the minimum investment threshold of €250,000 for foreign citizens to obtain Greek citizenship through the golden visa program. However, this amount increased to €800,000 starting September 1.
The impending change in the investment threshold prompted many investors to act quickly to purchase properties before the deadline, leading to increased demand and higher prices. Additionally, Piraeus has a large number of older properties available at lower prices, making it an attractive option for many buyers. Its port also serves as a gateway to Athens. Experts predict that Piraeus will undergo significant changes in the coming years. For instance, real estate companies like DKG Development are working on urban redevelopment projects in the area, including the construction of residential complexes in the form of serviced apartments, covering five city blocks. This project will have a total built area of 81,000 square meters, including a hotel alongside the serviced apartments.
Southern Suburbs Lead in Rental Prices
In the rental market, the southern suburbs continue to hold the top position for the highest average rental prices, significantly outpacing other areas. In the second quarter of 2024, the average rental price for a home in the southern suburbs reached €12.50 per square meter, up from €11.30 in 2023, which is a 10.6% increase. There was also strong demand for rental homes in Piraeus, with average prices rising by 14.3% from €8.75 per square meter in the second quarter of 2023 to €10 this year. The suburbs of Piraeus saw an even larger increase in rental prices of 14.6%, with the average price climbing from €7.14 in 2023 to €8.18 in 2024.
Looking more broadly at the real estate market and areas with the highest changes in selling prices, the eastern suburbs experienced a 12.8% increase, rising from €1,891 per square meter last year to €2,133 this year. The regional municipalities of Thessaloniki saw a 12.6% increase from €1,500 to €1,689, while the center of Athens increased by 12.4%, from €1,887 to €2,120. The western suburbs also saw an 11.4% rise, from €1,714 to €1,909. Rental prices in Thessaloniki increased by 10.5%, from €2,120 to €2,342 per square meter.
In terms of rentals, the eastern suburbs of Athens recorded a 12.5% increase, with prices rising from €8 to €9 per square meter this year. The center of Athens saw an 11.1% increase, from €9.52 per square meter in the second quarter of 2023 to €10.52 this year.