Greece Real Estate Rentals: Urban Rents Rise 49%

Greece Real Estate Rentals: Urban Rents Rise 49%

Uncover the factors behind the 49% increase in Greece real estate rentals over six years, driven by soaring demand and limited supply in urban areas.

In recent years, the Greece real estate rentals market has experienced a seismic shift, with rental prices escalating by as much as 49%. This phenomenon is particularly pronounced in urban centers, where the confluence of burgeoning demand and dwindling supply has exacerbated the ongoing housing crisis. The data from Eurostat reveals a stark decline in homeownership rates, plummeting from 84.6% in 2005 to a mere 69.6% in 2023. This decline has not only intensified competition among prospective tenants but has also been compounded by the inability of many new households to access the housing market.

As rental prices continue their relentless ascent, the purchasing power of households remains stagnant, creating a precarious situation for many. The General Confederation of Greek Labor (GSEE) has highlighted Greece’s position as the EU nation with the highest housing costs relative to income. On average, Greeks allocate a staggering 35.2% of their disposable income to housing expenses, in stark contrast to the EU average of 19.7%.

The upward trajectory of housing costs shows no signs of abating. Data from the online real estate platform Spitogatos indicates that between 2019 and 2024, despite a temporary lull in rent increases due to the pandemic, rental prices surged by nearly 49% in the eastern suburbs of Attica. In the heart of Athens, the average asking rental price has risen by 16.8%. While this figure may appear modest, it belies the substantial increases that have already transpired during the 2017-2018 period. Currently, prospective renters can expect to pay around €1,000 for a 100-110 square meter apartment in the city center, or approximately €700-800 for an 80 square meter dwelling.

The western suburbs have not been immune to this trend, witnessing a staggering 38% increase in rental prices, escalating from €6 per square meter to €8.37 per square meter. Meanwhile, the northern suburbs have experienced a 33.2% rise, with prices climbing from €8.33 per square meter to €11.1 per square meter. This surge in rental costs can be attributed not only to heightened demand but also to a significant contraction in supply. According to the latest census data from ELSTAT, there are currently 793,000 closed residences across the nation, further complicating the housing landscape.

The Greece real estate rentals market is navigating a tumultuous period characterized by soaring rents, diminishing homeownership, and a stark imbalance between supply and demand. As the crisis deepens, it remains to be seen how policymakers will address these pressing challenges in the housing sector.

Leave a Reply

Your email address will not be published. Required fields are marked *