Houses in Thessaloniki pricier than Athens
Some areas of high demand for holiday homes, especially from foreigners, along with some properties in the municipality of Thessaloniki, now appear to be more expensive than central Athens, with sale prices having recorded a significant rally in recent years.
Although a similar phenomenon had previously been observed in Athens, due to the explosion of demand from foreign investors, either to secure residence permits through the Golden Visa program or so as to utilize real estate through digital short-term rental platforms, the price increases have been smaller.
A typical example is the municipality of Thessaloniki. From the third quarter of 2019 to the third quarter of this year, the average asking price of residential sales increased by 83.5%, from 1,310 euros per square meter to €2,400/sq.m. today.
During the same period, the average asking price in the center of Athens recorded an increase of 43%, from €1,522/sq.m. to €2,177/sq.m. This is also due to the fact that prices in the capital had started to rise earlier than those in Thessaloniki – i.e. the recovery of the market started already in 2018, in contrast to that in the northern port city, which started later and from a lower base. Therefore, today houses are more expensive there than Athens. Today, the discrepancy stands at 10.2%.
Even in neighboring Halkidiki, the average asking price is 12.25% higher than the center of Athens, reaching €2,445/sq.m. New quality holiday properties are being developed in the area, and although the buying interest from Russia has disappeared in recent years, it seems that demand has been offset by other countries’ nationals, keeping prices high.
However, the difference is much greater in the Cyclades, where the average asking price today amounts to €3,583/sq.m., or 64.5% higher than the center of Athens. A major contributor to this is that many holiday homes on these islands are newly built, or less than 15 years old, and usually have a luxury character (e.g. gardens, pools, large area etc), making them more expensive. In recent years, significant investments have been made in the construction of new holiday home complexes, while due to high demand and high prices, very well-built properties have been put up for sale by private individuals who had bought a new construction – e.g. in the mid-2000s.
