The Greek economic slump, which began in 2009, is over. According to the Hellenic Statistical Authority (ELSTAT), Greece’s GDP grew for four consecutive quarters in 2017, and the European Commission predicts 2.5% growth per year in 2018 and 2019.
Investors share the optimism of the European Commission. According to the latest data from the Bank of Greece, foreign buyers spent twice as much on Greek real estate in January 2018 than the year before. International hotel chain Wyndham has opened its doors to the Dolce Attica Riviera hotel and the Four Seasons is going to open the Four Seasons Astir Palace Hotel Athens in the southern suburb of Vouliagmeni.
Analysts from international real estate broker Tranio look at what Athens offers international property investors 10 years since the economic crisis.
The Athens real estate market today
Over the first six months of 2018, the price of real estate in central Athens averaged €1,500/m², which is several times cheaper than many other European capitals. Per square metre, property in Athens is about twice cheaper than in Lisbon, thrice cheaper than in Madrid, Barcelona and Berlin, four times cheaper than in Vienna and almost seven times cheaper than in Paris.
According to the Bank of Greece, at the end of 2017, real estate in Athens was 44% cheaper compared to the peak of 2008. However, the fall in property prices is slowing down. In 2015, the price per square meter fell by 5.3% in 2015, by 1.8% in 2016, and by only 0.9% in 2017. In quarterly terms, prices have even stopped falling – they remained constant in the last quarter of 2017 and even increased in other Greek cities.
The International Monetary Fund (IMF) is even more optimistic. According to its report, Global Financial Stability Report April 2018: A Bumpy Road Ahead, the Greek capital was 13th among the world’s 42 largest cities in terms of rising housing prices. According to the IMF, between 2013 and 2017, the price of real estate grew by almost 10% per year in Athens. At the same time prices across the country have continued falling.