Why house prices jumped 7.2 pct in Greece in Q3

Prices of house up for sale in Greece rose by 7.2 percent in the third quarter of the year, according to classifieds site Spitogatos, with demand shifting away from homes in central city districts.

Based on a survey of asking prices for property being sold on the site, the biggest increases were seen in the northern and western suburbs of Athens, reflecting the need for larger, cheaper and more remote living quarters brought on by the pandemic.

This is in line with global trends. In a report, UBS said that city life has suffered a considerable blow from lockdowns, as entertainment and shopping options were reduced and city-center offices were largely abandoned. The cost-benefit ratio of urban living has taken a sharp turn for the worse.

In Greece, Spitogatos figures show that selling prices in the western area of Petroupolis jumped 25 percent to 1,923 euros per sq/m, while in Holargos and Keratsini they rose 23.7 percent (to 2,767 euros per sq/m) and 22 percent (to 1,200 euros per sq/m) respectively.

A similar pattern appears in the northern city of Thessaloniki.

In the area of Polichni and Triandri, selling prices move ahead by between 21 to 26 percent. In the area of Vardaris, the price of apartments being sold soared by 32.2 percent on the year.

"The Covid-19 health crisis brought about significant changes in our way of life, with the real estate market being affected. Based on the data we consistently collect from our platforms during this time, which is long enough for conclusions to be even safer, the pandemic seems to have permanently changed the requirements and needs of users, with potential buyers and tenants showing a preference for larger properties outside the central network of the country's two largest cities,” said Spitogatos CEO Dimitris Melachrinos.

“At the same time, the overall increase recorded in the requested selling prices and for rent throughout Greece is indicative of the general increase in demand in Greek real estate, both domestically and internationally," he added.