High demand
New builds may be increasing from year to year, but they remain few compared to demand and are a very small percentage of total sales. A typical example is Attica, where it was only 3.18% of the total transfers. Given the great interest in the purchase of new and quality real estate, their prices increase significantly from year to year, pulling upwards even older constructions. Last year, in the Municipality of Athens, the average transfer price of a newly built house built following 2018 was 3,069 euros (3,145 in the whole of Attica), while the average area of the properties sold was around 74.1 square meters. At the top of both demand and prices are “green” newly built buildings (energy class “A+”), a title that concerns both their energy shielding and the way they are constructed. Related research shows that in 2023 a building’s “green” credentials are increasingly important to more than 50% of tenants/buyers. Something that pushes even more towards new construction. Even if an older property undergoes a major renovation, it will hardly reach a residence designed from the start with a “green profile”.
Building
Market insiders point out that it will take years for the rate of new construction to meet market demand, despite the increase in production numbers in recent years. According to the latest available data, in the first nine months of 2023 private construction activity saw a 9.1% increase in the number of building permits, a 13.9% increase in area and a 17.7% increase in volume compared to corresponding period of 2022. Engineers argue that a “better performance” is expected in 2024, if there are no new surprises, as the prices of building materials are significantly affected by international developments. A key factor is the cost of construction. Materials are becoming more expensive, but manufacturers have no more room to absorb the extra cost and any new increase is passed on to the final price. Given the small production this is not a problem, as even expensive properties are sold. The upward trend in prices is also confirmed by the data of the Central Bank, with the latest data showing that in the third quarter of 2023, new apartments became 11.6% more expensive than in 2022.
Research
Research by the Hellenic E-Real Estates Network, regarding residential properties built following 2018, shows that there is scope for a new price increase in 2024, while placing the average price per transfer of a newly built property in Attica at 3,145 euros/sq.m. Attica is the largest market in Greece and determines the overall trends in Greek Real Estate. According to the registry of real estate transfer values of the General Secretariat of Digital Government Information Systems, we see an average area per transfer of 92.21 sq.m. and the average purchase cost per square meter of the aforementioned 3,145 euros, with an average price last year of 290,000 euros. The research focused on 35 areas of Attica where, in total, newly built properties make up only 3.18% of all transfers. In the Municipality of Athens, only 1.75% of the transfers concerned houses built following 2018 and in absolute numbers only 83. An expected finding, given the saturation in the center of Athens. Interest in new constructions has shifted to areas mainly in the western and eastern suburbs where lots are more plentiful and cheaper. This has created a significant growth wave, with the highest percentages of newly built property transfers recorded in Ilion with 22%, Alimos in second place with 16.41%, Vrilissia 14.29%, Elliniko/Argyroupoli 13% and Petersburg 12.22%. On the contrary, the smallest percentages of newly built transfers, following the Municipality of Athens, were in 2023 in Aigaleo with only 1.67%, in Galatsi with 1.22%, in Zografou 1.52%, in Kifissia 1.66%, in the area Filotheis-Psychikou 1.98% and finally in Chaidari 1.39%.
Up to 6,870 euros square meter in Attica
New builds may be more expensive than older ones, but that doesn’t mean they’re all out of reach for the average buyer. Yes, the upper end is 6,870 euros/sq.m. in Glyfada, however, there are new buildings with an average price per square meter of 1,984 euros/sq.m. to Byron. This means that a residence of 75 sq.m. “of the box” can be bought at prices close to 150,000 euros. According to the analysis of the data from the register of real estate transfer values, carried out by the President of the Hellenic E-Real Estates Network, Themistocles Bakas, the average purchase price of a newly built residence in Voula was €4,993/sq.m. and with an average area of 157.8 sq.m., in Elliniko/Argyroupoli at €4,209/sq.m. and with an average area of 95.15 sq.m., in Dafni/Ymittos at €3,851/sq.m. and with an average area of 47.62 sq.m. and in Chalandri at €3,260/sq.m. and with an area of 113.7 sq.m. According to the analysis, the largest average surfaces are recorded in Alimos (115.82 sq.m.), Vrilissia (118.50 sq.m.), Voula (157.80 sq.m.), Cholargos/Papagou (106.9 sq.m.) and in Chalandri (113.7 sq.m.). The other side is Dafni/Ymittos (47.62 sq.m.), Heraklion (62.6 sq.m.) and Kallithea (59.5 sq.m.), where the smallest average surfaces are recorded. Big and small, cheaper or more expensive, new-build properties are the first choice for many who can afford them, and according to realtors, an increase in the annual rate of new construction is one of the best ways for averages to fall. prices in the entire housing market.
TRANSFERS OF NEWLY BUILT PROPERTIES 2023
| ATTICA | TRANSFER OF RESIDENTIAL PROPERTIES UNDER CONSTRUCTION AFTER 2018
|
PERCENTAGE OF NEWLY BUILT PROPERTIES TO TOTAL TRANSFERS IN 2023 |
| Saint Paraskevi | 12 | 9,16% |
| Saint Dimitrios | 11 | 7,64% |
| Saints Anargyri | 3 | 3,75% |
| Municipality of Athens | 83 | 1,75% |
| Egaleo | 2 | 1,67% |
| Salted | 21 | 16,41% |
| Maroussi | 10 | 5,75% |
| Vrilissia | 11 | 14,29% |
| Byron | 8 | 4,06% |
| Galatsi | 2 | 1,22% |
| Glyfada | 21 | 7,75% |
| Daphne/Himetos | 8 | 8,25% |
| Elliniko/ Argyroupoli | 13 | 13,00% |
| Zografou | 4 | 1,52% |
| Ilioupoli | 4 | 2,47% |
| Heraklion | 2 | 2,00% |
| A million | 4 | 22,22% |
| Kalithea | 12 | 2,78% |
| Kifissia | 3 | 1,66% |
| Lycobrisi/Pine | 1 | 1,92% |
| Muscat/Taurus | 2 | 2,17% |
| Nea Ionia | 2 | 1,33% |
| Nea Smyrni | 3 | 1,20% |
| Palaio Faliro | 12 | 4,44% |
| Papagou/Holargos | 10 | 6,29% |
| Dove | 6 | 2,79% |
| Petersburg | 11 | 12,22% |
| New Philadelphia/Chalkidona | 2 | 2,38% |
| Philothei/Psychic | 2 | 1,98% |
| Caress | 1 | 1,39% |
| Chalandri | 14 | 8,64% |
| Total | 301 | 3,18% |
Source: Nationwide E-Real Estates Network, residential properties built following 2018.
AVERAGE PRICE/TRANSFER AREA
| ATTICA | AVERAGE TRANSFER PRICE OF A NEWLY BUILT RESIDENTIAL CONSTRUCTION AFTER 2018 IN €/SQ.M. | AVERAGE TRANSFER AREA OF A NEWLY BUILT RESIDENTIAL CONSTRUCTION AFTER 2018 IN SQ.M. |
| Saint Paraskevi | 2.218 | 98,7 |
| Saint Dimitrios | 2.703 | 95,7 |
| Municipality of Athens | 3.069 | 74,1 |
| Salted | 2.650 | 115,82 |
| Maroussi | 3.108 | 81,04 |
| Vrilissia | 3.237 | 118,50 |
| Bullet | 4.993 | 157,8 |
| Byron | 1.984 | 74,9 |
| Glyfada | 6.870 | 92,1 |
| Daphne/Himetos | 3.851 | 47,62 |
| Elliniko/Argyroupoli | 4.209 | 95,15 |
| Zografou | 2.562 | 75,6 |
| Heraklion | 2.886 | 62,6 |
| Kalithea | 2.938 | 59,5 |
| Papagou/Holargos | 2.547 | 106,9 |
| Dove | 2.487 | 85,41 |
| Chalandri | 3.260 | 113,7 |
Source: Nationwide E-Real Estates Network, residential properties built following 2018.
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