The growth in demand for real estate has increased and creates new conditions not only because of interest from foreign investors, but also thanks to local buyers. A study conducted by the IOBE group for the last quarter of 2018 showed that 0.8 % of the country’s population said they would consider buying residential real estate, reflecting improved household expectations. It should also be taken into account that 30% of the total volume of transactions in the domestic market is foreigners. In general, demand in the local real estate market exceeds 100,000 stakeholders.
According to a study by the Bank of Greece, prices in the second quarter of 2018 rose 11% in Athens and 7.7% nationwide. The real situation is a little different. According to Spitogatos, for the third quarter of the previous year, the annual growth rate was 25.3%, and the average rate was €1522 per square meter. In Thessaloniki, this growth was even greater that summer, reaching 28.3% year on year.
What do the experts say?
A study by the Arbitrage Real Estate group in the residential real estate market showed that the restoration of mortgage lending will be a decisive factor for the rapid recovery of the market. The company reviewed a series of residential real estate transactions throughout Greece in 2018 and found that more than 80% of them were made in cash. It is expected that in 2019 this figure will be slightly improved.
An analysis by the group also showed that Athens is the main direction of growth in the housing market. It takes this position due to the growing demand for tourism and the growing popularity of short-term rentals.
Analysts are making large bets on the fact that the planned construction of 4 lines of the Athens metro will be another factor that will strengthen the real estate market. The first phase of the project, with a budget of €1.8 billion, will have a length of 12.8 kilometers and will consist of 15 stations connecting Alsos Veikou with the city center and Goody.
Also, an important factor for market growth will be the role of demand from foreign buyers in popular tourist areas outside the two main cities of Greece, such as Crete, Halkidiki, and the Aegean and Ionian Islands.