31 Oct Real Estate Property prices rise: which are the hot selling locations – the Airbnb factor
Which are the hot selling locations and what is revealed by a survey conducted by the Realtors’ Association of Attica
Given that the worse days are over as far as the real estate market is concerned, the areas and the real estate property categories that offer surplus value and yields for the investors are increasing.
According to what the experts stated at the newspaper “Imerisia”, the short-term rentals and Airbnb, that lifted the Greek real estate from the mire some years ago, are just one piece of the “mosaic” of the prices rising. In other words, the rebound niches are multiplied and affect not only the purchase of a house, but also that of commercial, office and storage premises, for which the demand is growing.
Which are, however, the real estate market hotspots?
Regardless the fact the Airbnb yields have decreased, and as a result the profit margin – especially for the newcomers in the said market – has remarkably decreased, the purchase of a house still attracts strong demand. At the same time, according to the data produced by the survey regarding the value of the houses in Attica during the third trimester of 2019, conducted by the Realtors’ Association of Attica and the company Property Market Technologies, and published by “Imerisia” newspaper, the real estate agents’ expectations for an increasement at the apartment prices in Athens do focus on areas such as Koukaki or Pangrati, where there already has been a big boost because of Airbnb.
On the contrary, their expectations include Neos Kosmos-Fix for two and three-bedroom apartments and the areas of Goudi and Ilissia for smaller apartments, studios and one-bedroom apartments. At the same time, according to the survey, there is an intense activity as far as real estate property purchases are concerned at Neos Kosmos-Fix market, whereas this is not the case at Ilissia, which means that the forecast for value rising does not go along the same lines as the purchases.
“The combination of the forecasts for price rising and the volume of the sold properties during the second and first trimester of 2019 proves that obvious results cannot be easily concluded”, as Kostas Gatis, Managing Director at Property Market Technologies, explains. It has to be noted that the survey attempts for the first time to define the real estate property market trends, using a scientific method.
Within this scope, the following real estate agencies participate: Katikia Mina Harbali, Cyclos Εstate, Nikolopoulou Properties, Politia Real Estate, Makris Real Estate, Mobilia Real Estate, Friends Real Estate and Potamianos Real Estate Group. According to one more survey conducted by the Realtors’ Association of Attica, Exarcheia and Kypseli are also among the “hot spots” of the real estate property market, given that at these two areas an one-bedroom apartment changes hands within only some months from the time it comes out to the market.
In particular, it is estimated that up to two months are needed for a two-room apartment to be sold at Mousseio, Neapoli and Exarcheia, while the time needed for the sale is increased to five months at the area known as Terma Ippokratous.
According to the same survey, at Kypseli and Evelpidon only two months are needed for a an one-bedroom apartment to be sold, whereas four and seven months are needed for a buyer to found for an apartment at New Kypseli and Alepotrypa, respectively. For other…wallets, the surplus value focuses on luxury (minimum value of 1 million euros) and super luxury (value of more than 5 million euros) properties, for which the demand is remarkable.
It comes of no surprise that during the last years companies that operate in the said market have entered the Greek market, such as the French Barnes – CEO Katerina Mitsotaki, and the German Engel & Völkers – CEO of the Greek branch Nathalie Leontaraki.
It is indicative of the current trend the fact that Greece Sotheby’s International Realty created recently the special edition «Art de Vivre – Exclusive in Greece», focusing on the purchase of luxury residences in Greece. It is estimated that every year 30-40 residences of this kind are sold, a number that corresponds to purchases ranking from 70 up to 100 million euros.
According to what the market players state at the newspaper “Imerissia”, the demand for this kind of residences is estimated to increase, in particular after the legislative initiative that the Greek government is said to be elaborating, regarding the granting of a Greek passport to foreign investors, under the condition that they invest a capital of more than 2 billion euros in real estate property owning a permanent residence of a minimum value of 500.000 euros.
At the same time, the Greek government examines to apply, in combination with the granting of citizenship, the nondom (non-domiciled) initiative, which provides the multimillionaires who transfer their tax residence in Greece, with a limited tax rate.
Investments of 223 million euros in business premises
A category of the real estate market that promises surplus values is the office premises, where appr. 223 million euros have been invested during the first semester of the year. The last years the Real Estate Investment Companies (Société Anonyme) are seeking for great offers – where Prodea Investments, Grivalia -before merging with Eurobank- and Trastor representing the lion share regarding the investment in office premises. It is indicative of this trend that Prodea is working on a huge investment plan in the next years, of 800 million euros, aiming at the acquisition of high standard business premises.
The company is in the middle of exclusive negotiations for the 30% of the foreseen investments, more than the half (55%) of which refer to residential assets, storage premises, hotels and mix use properties. The rest 45% of the portfolio to be acquired includes offices, high standards commercial premises and supermarkets. This mobility, which may affect those owning offices or stores which meet the adequate standards, is a result, according to the analysts, of the low offer of adequate premises, a fact that, in combination with the amelioration of the business environment leads to a remarkable increase of the demand on new office premises.