The Acropolis, Parthenon, and the Temple of Olympian Zeus attract scores of tourists to Athens. A major European tourist hub, the city also attracts its fair share of overseas investors, who find its property market promising for a number of reasons:
- Prices per square meter in Athens are several times lower compared to other European capitals (about thrice cheaper than in Lisbon, Madrid, and Berlin, five times cheaper than in Vienna, and almost eight times cheaper than in Paris).
- The high potential for growth: According to the Bank of Greece, in Q1/2017, property in Athens was 44% cheaper compared to its 2008 peak. At the same time, the Greek economy is showing signs of recovery, with the country’s GDP expected to grow by 2.8% in 2017, according to the International Monetary Fund (IMF).
- The growing number of tourists: According to the Greek Tourism Confederation (SETE), the number of international tourist arrivals in Athens grew from 2.6 million to 4.5 million between 2012 and 2016, or about 16% annually.
As such, buying and leasing a property for short-term to tourists is one of the simplest and most profitable investment strategies currently, with an expected net yield of 5%.
Residential property prices in Athens neighborhoods and suburbs (€/m2, August 2017)
Sources: Rondyak Real Estate, Spitogatos.gr
The Old City: Anafiotika, Monastiraki, Plaka, Psirri, and Thiseio
Located at the foot of the Acropolis, these neighborhoods attract tourists who want to see the antiquities, visit the Monastiraki flea market or the boutiques along Ermou, the city’s main shopping street, eat souvlaki in restaurants overlooking the Acropolis, or experience the buzzing nightlife of Psirri.
Photo: https://ru.depositphotos.com/13136720/stock-photo-traditional-houses-in-plakaathens.html Tourists love to stroll along the narrow streets of Plaka, Athens’ oldest neighborhood
“In these neighborhoods, real estate has always been expensive for both investors and landlords. The price for a property in need of repair with no view of the Acropolis (on the ground floor, the basement, or semi-basement level) ranges from €1,000 to €2,000 per square meter, otherwise, it rises to €3,000 to €6,000 per square meter,” Irina Rondyak, head of Rondyak Real Estate, Tranio’s partner in Greece, said.
Investors’ interest in the historical center is growing. According to Greek media outlet, Kathimerini, flats located between Monastiraki, Omonia, and Syntagma squares are almost unavailable to local residents – in most cases, they are already leased to international tourists.
A Neighborhood for the Upper Class: Kolonaki
Kolonaki is located east of the historical center, near the Hellenic Parliament and Syntagma Square. Apart from restaurants and boutiques, there are offices, legal firms, and foreign consulates located in the area. Most buildings were constructed in the 1960s, and over the next 30 years, this part of the city transformed into an upscale neighborhood where the most affluent Athenians live.
The view of Kolonaki from Lycabettus Hill
According to Irina, investing in Kolonaki property is always profitable. The neighborhood is located on a hummock – many houses face Lycabettus Hill, the Acropolis, and the major part of Athens. Prices range from €1,500 to €6,000 per square meter.
Within Walking Distance of the Acropolis: Koukaki, Metaxourgio, and Mets
Koukaki is located near the historical center, south of Anafiotika and Plaka. In 2015, the number of tourists who booked accommodation in Koukaki via Airbnb increased by 800%. The neighborhood is booming, and new bars, restaurants, and boutiques are constantly opening. Residential property prices range from €800 to €2,000 per square meter, depending on condition.
To the north of Psirri lies Metaxourgio. According to realtor Lola Saurova, Tranio’s partner in Greece, the area is actively developing, with frequent gallery, museum, and cafe openings in recent years, giving it a reputation as a neighborhood of artists and hipsters.
There are many neoclassical buildings in Metaxourgio. According to Spitogatos.gr, prices per square meter range from €400 for flats in need of repair to €4,000 for apartments in modern complexes with swimming pools.
Mets has preserved the atmosphere of mid-20th century Athens
Another area that is attracting investors is Mets, southeast of Plaka and Anafiotika. The neighborhood is just a 15-minute walk from Syntagma Square and the Acropolis. According to Spitogatos.gr, prices for flats in Mets range from €900 to €5,000 per square meter.
Southern Suburbs: Alimos, Voula, Vouliagmeni, Glyfada, Kallithea, Palaio Faliro, Piraeus, and Elliniko
Near the center of the capital, Kallithea is one of the suburbs in southern Athens in constant demand. According to Spitogatos.gr, prices range from €250 to €5,000 per square meter in the district.
West of Kallithea, 20 minutes from the center of Athens by underground, Piraeus is Greece’s largest port, attracting both tourists and investors. According to Lola Saurova, rental demand along the coastline is extremely high. There are almost no new builds, and prices for flats average €8,000 per square meter
Tourists come to Piraeus to see fishing boats and luxury yachts
According to Irina Rondyak, the neighborhoods farther south – Alimos, Voula, Vouliagmeni, Glyfada, Palaio Faliro, and Elliniko – bring good profits for investors. Four local beaches have been awarded a Blue Flag. Property prices range from €750 to €6,000 per square meter.
“Proximity to the sea, beaches, marinas, Piraeus seaport, and the center of Athens guarantees a stable rental demand from April to December,” Ms Rondyak explains.
Yulia Kozhevnikova is a real estate expert at Tranio.com, an overseas real estate broker.
Tranio.com is an international overseas property broker with a network of 700 partners worldwide and a catalogue of more than 110,000 listings in 65 countries. The company publishes daily news, high quality analysis on foreign realty, expert advice, and notes on laws and procedures related to buying and leasing properties abroad so that readers can make their property decisions with confidence.
Header photo credit: https://ru.depositphotos.com/27247359/stock-photo-acropolis-of-athens.html