After Attica, the “aggressive” investors of the commercial and residential real estate market have turned to cities in the Greek region, where prices are starting to “run” leaving large margins of returns in a short period of time.
Patra is in the new areas that the so-called “gamblers” of the real estate market are turning to, aiming for the possibility of obtaining high short-term profits for investors with an “aggressive” mood.
With annual returns that often exceed other asset classes, such as shares on the Athens Stock Exchange, the real estate market has attracted many opportunistic investors in recent years, with the entry of a large number of foreign buyers, due to the possibilities offered by the Golden Visa.
An experienced executive of the real estate market reported to pelop.gr that in Patra at the moment seven out of ten people looking to buy a property are opportunists. They are not interested in holding the apartment for long and move aggressively. As things were in Athens a few years ago. And the reasons are many.
A series of projects launched in the Achaean capital promise new capital gains in the housing landscape. Extensive redevelopment projects are planned for the historic center along with new pedestrian walkways, while the port is one of the next to be developed by TAIPED. The city is home to three universities and over 30,000 students where demand for apartments is strong.
The relentless rise in apartment prices offers profits hard to find elsewhere. According to data published a few days ago by the Bank of Greece, prices in the fourth quarter of 2023 continued their frantic course, increasing by 11.8%. For 2023 the increase was 13.8% following an increase of 11.9% in 2022.
The jump in rents and property sales prices was also captured by the well-known platform Spitogatos, which published data for the first quarter of 2024 compared to the corresponding period of 2023. In Patras, hundreds of properties with a price range are currently available for sale ranging from 1,083 euros/sq.m to 1,207 euros/sq.m. registering an increase of 11.40%, i.e. one of the best returns nationwide. Even better are the returns on rental prices in Patras, which range from 6.40 euros/sq.m. up to 7.26 euros/sq.m. i.e. an increase of 13.40%.
However, the issue also has social dimensions. The head of the real estate network E-Real Estates, Themis Bakas, told pelop.gr that the rapid increase in rents is a “major” topic of discussion and reflection among all fellow citizens, especially those who are thinking of taking the next step in their lives, starting a family and have started the housing search “safari”, either for those whose lease has expired or will expire in the coming months and expect to be informed regarding the new “requirements” of the owner.
In 2023, as far as the Achaean capital is concerned, it “closed” with a new average increase of 6%-10% in properties suitable for families and more than 10%-12% in properties suitable for young people or even students.
“The major social problem of housing costs has occupied us and will continue to occupy us in 2024,” says Mr. Bakas. Patras is the 2nd city with the biggest increases, with a cumulative increase of 49.3% over the last 5 years. Now the cost of housing has soared to almost the full salary for a family home and 60-70% of income for housing suitable for young people and/or students.
Themis Bakas also emphasized that the economic challenges in the global community as well as in our country are just around the corner and expanded housing policies are needed immediately, policies with an expansion of beneficiaries, with the aim of curbing costs the next day and accessibility to the housing market , but, at the same time, policies with a 2-3 year implementation, which will aim to eliminate own data in the future, as well as measures that will “protect” property under conditions of an unhealthy economic environment.
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