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After a period of decreased property values and rents due to a prolonged financial crisis, the real estate market has experienced a significant recovery. The Bank of Greece reports that house prices in the Attica region have surged by nearly 70% since 2018. Additionally, rents have gone up by around 35% to 50% in most areas, creating challenges for both first-time renters and those who are looking for new accommodations due to various reasons.
Furthermore, many landlords are opting for substantial rent hikes during contract renewals, and this situation has been worsened by the rise in inflation. Landlords believe they can compensate for what they consider as lost income over the span of several months or even longer.
According to research conducted by Potamianos Real Estate Group, which takes into account actual lease agreements rather than advertised prices, the average rental cost stands at €7.90 per square meter at present, marking an increase of nearly 35% compared to 2017. In certain neighbourhoods near central Athens, such as Kypseli and Pangrati, as well as in the port area of Piraeus, rental prices have surged by over 50% from 2017 to the end of 2022.
People who are living in rented accommodations are grappling with the reality that they might never accumulate enough funds to realize their goal of owning a home, as monthly mortgage payments could be beyond their financial means.
Data sourced from the European Union statistics agency Eurostat reveals that in Greece, 32.4% of urban residents experience a disproportionate burden when it comes to housing expenses, in contrast to 21.9% in Denmark and 15.3% in the Netherlands.
Furthermore, a significant 74.2% of Greek individuals who rent their homes allocate more than 40% of their available income to cover rent and essential expenses. In the year 2021, 36.4% of adults were behind on their rent, mortgage payments, and utility bills. The situation is even more challenging for the 416,608 households consisting of a single member, where there is no second source of income.
In the case of individuals brave enough to opt for a mortgage, the cost of flats in central Athens, often aged over 35 years with minimal amenities and insulation, averages around €1,780 per square meter. This equates to nearly €180,000 for a 100 square meter flat. Across the Attica region as a whole, the average prices exceed €2,000 per square meter. Repaying such mortgages requires a substantial level of financial liquidity.
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