Housing prices show restraint
January-September data point to a reduction in transactions due to the increase in rates
Residential property transactions in Greece appear to have dropped a gear in the first nine months of this year, due to the previous major hikes in asking and sale prices.
According to the analysis of data collected by the Register of Real Estate Transfers, edited by the housing market observatory Topo GES (Re/MAX Estate), in most areas where a significant increase in prices had been observed, transactions fell sharply compared to the corresponding nine months last year. In particular, in Athens and western Attica, the number of sales transactions increased by around 1-2% compared to last year, while in the southern suburbs there was a decline of around 15% and in the northern suburbs the decline was 30% on average. Transactions in eastern Attica also recorded a drop of 34%, while in Piraeus the drop reached 33% and in the suburbs of Piraeus, 25%.
Undoubtedly, this development should be attributed not only to the large increase in prices, but also to the consequences of the increase in interest rates and the cost of living, which put a significant percentage of interested buyers off the housing market.
On the other hand, areas such as the Saronic islands saw a 10% increase in sales, as the main source of demand is overseas investors. In Athens, where there is also investment interest from outside of Greece, the average value of the properties that changed hands amounted to 1,317 euros per square meter, 12% higher than last year’s first nine months. Correspondingly, in the southern suburbs of Athens the number of transactions may have been 15% lower than last year, but could have been double that had prices not shown some restraint. For example, in Glyfada the average sale price was €2,332/sq.m., 10% lower than last year, while the properties purchased were 17% smaller, averaging at 86 sq.m. Therefore, sales increased by 4%.
Similar examples can be found in Moschato (21% increase in sales and 11% decrease in price) and Nea Smyrni (10% increase in sales and 15% decrease in sales prices, to €1,057/sq.m.).
