Greek Real Estate Market Growth

The growth within the Greek real estate market has undoubtedly gained momentum since the pandemic outbreak. This market is now regarded as a prime attraction for foreign investors, primarily due to the country’s Golden Visa Program.

Since the start of 2023, real estate purchases by Golden Visa investors have surged by approximately 170%, reaching a total value of €975 million. The prospects for the real estate sector appear promising for the future, with prices on the rise and several significant projects in progress.

Hellinikon Development Boosts Property Prices along the Athens Riviera

The extensive revitalization of Athens’ former airport, Hellinikon, has sparked substantial interest in real estate. As the initial phase of construction concludes by 2026, the former Athens Airport site will undergo a transformative metamorphosis.

Within three years, the 650-acre expanse along the southeastern coast of Athens will showcase the following:

• approximately 10,000 high-end beachfront residences and apartments,
• a Mandarin Oriental hotel,
• one of Southern Europe’s largest shopping malls,
• a mega-yacht marina,
• a Hard Rock-branded casino,
• a state-of-the-art sports complex,
• a private school,
• cultural and entertainment hubs,
• an expansive beach,
• and a two-million-square-meter green space set to become Europe’s largest coastal park, all commanding breathtaking views of the Saronic Gulf’s azure waters.

As of now, all 170 units in the 200-meter Riviera Tower have been sold. Sales and leases for properties at Ellinikon have collectively reached €1.2 billion, while prices for residential real estate in adjacent suburbs have begun to climb.

Greek Real Estate Market 2023: Sales Prices and Rental Rates for Residential Properties

Prospects in the housing market are also deemed favorable, with average prices witnessing a 14.7% upswing in Athens’ southern suburbs and an 11% rise in the city center during the second quarter (April-June).

Within the same timeframe, rents increased by 6.8% in the southern suburbs, 6.7% in the northern districts, and 5.8% in the city center of Athens.

As of July 2023, the highest asking price for properties for sale was in the Aegean islands region, reaching €2,981 per square meter. During the same month, the most elevated asking price for rental properties was observed in the Attica region, at €10.93 per square meter per month.

In July 2023, the average asking price for residential properties for sale was €2,389 per square meter, reflecting a 10.40% surge compared to July 2022 (€2,164 per square meter).

In terms of residential rental properties during July 2023, the average asking price was €9.29 per square meter per month, exhibiting a 12.06% increase compared to July 2022 (€8.29 per square meter monthly).

Short Term Lease: A Turnover of 4 billion euros

. Andreas Chiou, president of PASYDA, shares that by 2022, turnover had reached €3.3 billion, with expectations to hit €4 billion in 2023. PASYDA represents 6,500 property owners and management companies utilizing platforms like Airbnb.

While the platform’s growth in seaside tourist destinations is impressive, it is the capital city that is at the center of the controversy surrounding Airbnb.

In specific – central – neighborhoods of the capital, with the most typical example being Koukaki, the presence of Airbnb has become more than noticeable, as a result of which many permanent residents leave their neighborhoods, either by putting their apartments on the platforms and renting other properties, or by selling them – often to short-term rental companies.

In Koukaki we find 1,072 Airbnb listings, the historic center (commercial triangle – Plaka) is, unsurprisingly, the area with the most listings on the platform, with 2,317. Many listings also appear in the wider area of Exarchia with 928 and in Neos Kosmos with 911.

Greece is Regulating Short Term Rentals

The Greek government aims to regulate the short-term property market by implementing several key measures.

To address real estate managers and large companies, plans are in place for them to register as legal entities and obtain a special operating mark. These entities will be subject to VAT and accommodation taxes, similar to hotels. However, individual landlords will continue to benefit from VAT exemptions on rental income, as long as they register a specified number of properties under their VAT taxpayer number.

All changes will take effect from January 2024.

. In particular, Kyriakos Mitsotak is spoke about “structural intervention” which “responds to an issue that we have discussed many times and that is none other than the unethical short-term rental.”

“Yes, we want short-term leasing, it is a competitive product that supports the Greek economy and the income of property owners, but it is an activity that in various regions of the country has sent rents soaring and distorted competition, especially in tourism,” he said. “From January, therefore, the income from such leases, from three or more properties, will be subject to VAT and the fees applicable to hotels and rooms for rent,” he noted.