The increase in real estate prices continues unabated in the first months of 2023.
Continuing the rally recorded in 2022, in the first quarter of the current year, according to data from the Bank of Greece, apartment sales prices registered a new increase of 14.5%.
Based on available provisional data, it is estimated that in the first quarter of 2023, apartment prices were on average up 14.5% compared to the corresponding quarter of 2022. For 2022, apartment prices increased by an average annual rate of 11.7% (revised figures), compared to 7.6% growth in 2021.
In more detail, the price increase in the first quarter of 2023 compared to the corresponding quarter of 2022 was 12.8% for new apartments, i.e. up to 5 years old, and 15.6% for old ones, i.e. aged over 5 years old. Based on the revised figures, for 2022 the average annual rate of increase in prices for new apartments was 12.2%, compared to an increase of 8.2% in 2021, while the average annual rate of increase for old apartments was 11.3 % in 2022, compared to an increase of 7.2% in 2021.
From the analysis of the data by geographical region, it appears that the increase in apartment prices in the first quarter of 2023 compared to the corresponding quarter of 2022 was 16.5% in Athens, 16.1% in Thessaloniki, 13.1% in other large cities and 10.6% in the other regions of the country. For the whole of 2022, the price increase in the same regions compared to 2021 was 13.7%, 12.5%, 10.6% and 7.9% respectively (revised figures). Finally, for all the urban areas of the country, in the first quarter of 2023 apartment prices increased by 14.7% compared to the first quarter of 2022, while for 2022 the average annual increase was 12.1 %(revised figures).
According to the latest data Property Index (SPI), the average asking price of apartments today is 2,070 euros/sq.m.
It is characteristic that during this year’s first quarter, almost all individual geographical zones of Attica recorded a double-digit increase compared to the corresponding quarter last year. Specifically, an increase of 13.2% was recorded in the southern suburbs, where the average price was 3,368 euros/sq.m. from 2,976 euros/sq.m. 12 months ago. An increase of 13.1% was also noted in the suburbs of Piraeus, which, however, remain the cheapest area of Attica, with the average asking price not exceeding 1,500 euros/sq.m. An 11.2% increase was also noted in the western suburbs (1,635 euros/sq.m.), while in the north, the average asking price is now 2,800 euros/sq.m., up 10.3% on an annual basis.
Prices remain lower
Real estate prices in Greece remain lower than in other European countries, according to real estate market executives. And this is because during the crisis in Greece we had a reduction in real estate prices from 40% to 42%. The Bank of Greece index from 100 in 2008 reached 58, with a low in 2016. From then until 2022 the market has covered about 85% of these losses.
But if we look at what happened in the other countries of the European Union during this period of time we will see that property prices recorded an average increase of around 40%. Therefore, today we are about 12% below the high prices recorded in 2008, while Greece did not follow the property price rally of Europe, America, Canada and many other developed countries.
According to market executives, while the price per square meter has increased significantly in recent years, it still remains at attractive levels for investors, always compared to other countries.
The returns on the domestic real estate market are also attractive, hovering around 6% (even in the residential sector), much higher than other competing European countries.