According to a report issued by the National Bank of Greece on Monetary Policy, the bank institute asserts that the development of the real estate market in Greece will continue independently of any impediments which have emerged at the domestic market. The increasingly cost of raw materials, the lack of workforce relevant to the building construction sector and the upheavals concerning the supply chains, bear as impact the increase of the values of newly constructed buildings, the reduction of the building construction activity and the restriction of capital returns regarding the market.
Despite the above impediments, in recent months, the dynamic of the investment business property market and residencies as well as the dynamic of building construction activity is steadily moderated. As regards the property market, the first semester of 2021 positive rates of change were recorded with the prices of high standard offices and stores being moderated at 1,4% and 1,1% in relation to the second semester of 2020. Furthermore, it is noted that the main interest for the business property market in Athens is depicted in the high annual increase rate of the relevant prices (3,9%) and the slightly lower increase regarding the leasing of offices (2,6%) following the recession of the biennium 2019-2020. At the same time plenty of new development and reconstruction of business premises projects are being initiated, which according to the data by the Hellenic Statistical Service (ELSTAT) record remarkable growth rate, although the General Price Index of Material for the Construction of New Residence Buildings in November presented an increase of 7,1% on an annual base, in comparison with the years 2019 and 2020.
Additionally, at the residence property sector, the exponential growth is no longer credited solely to tourism, but it is credited to the Golden Visa program as well whose constant demand has ranked the Greek market at the top of investors’ choices globally. The increased interest on foreign investment continues to supply steadily since 2018 the recovery of high standard property market. The constant preference to the domestic market by foreign investors regarding the purchase and sales area as well as the property leasing area, either long term or short term, increases vertically the demand for properties and results to a continuous internal competitiveness.
Hence, the number of transactions relevant to the purchase and sales of properties, despite the deceleration which was recorded in 2020, already presents a new positive rate since 2021. It is essential to note that the location and the size of the property as well as the property quality, its condition, and its oldness, constitute crucial determining factors for the choice of property within the frameworks of the purchase and sales procedures. The increasing trend of the property market has indicated the areas of most interest in investment gathering the greatest demand as follows: Plaka, Pagrati, Acropolis, Mets, Neos Kosmos, the Hilton and Agios Artemios.
The cumulative economic decline of the property values and the limited building construction activity of the past decade have presented important opportunities and potentials. Towards their reinforcement the Golden Visa Program, which currently constitutes the corner stone of the constant increasingly real estate and investment development, the development and acceleration of important infrastructure projects and in general the economic recovery are expected to play the main part to the steadily positive dynamic of the real estate market.