Athens jumps 15 places on list of real estate market prospects

Athens jumps 15 places on list of real estate market prospects

Athens ranks in position number 14 on a list of European capitals based on real estate market prospects, jumping 15 places from a year ago.

The report, put together by Urban Land Institute and PwC, shows that Europe's second tier cities are becoming more popular among investors as prices in major capitals are judged to have peaked.

"The rankings suggest a remarkable return of investor confidence in the Athens property market this year," said the report, pointing to improving economic conditions in the country.

Topping the list of 31 European cities is Lisbon, followed by Berlin and Dublin. It is the highest position Athens has had on the list since 2015.

Office markets in Greece are thought to offer the best potential, right now.

“The opportunity will be in development because the market is starving. There has been no development for eight or nine years so even if you only get a slight uptick in demand, there is no stock. Over the last few months we have seen a surge in rental values for class A offices which shows there is demand there,” according to one local expert, who was cited by the report.

Meanwhile, the best shopping centres are seen as having ridden out the crisis years comparatively well by taking up the slack as secondary and high street retailing has withered.

“We are still doing shopping centre development and expansion in some markets like Athens,” said one international investor.

But others are not yet convinced: “Right now, I wouldn’t be going to Athens or Istanbul because of the macro-political risk and uncertainty, as well as the [lack of] depth of those markets and governance.”