Leasing a recently renovated apartment in Athens & Thessaloniki
Foreign visitors, digital “nomads” and of course Greeks are forming the basic audience for those interested in leasing residential real estate, in the country’s two biggest cities, Athens and Thessaloniki. During the past few years, rent costs have increased at a very rapid pace, as a result of high demand, but also because a percentage of the available apartments, are used exclusive for short-term leasing, through online platforms.
Based on the latest available data, rents in in the center of Athens and Thessaloniki have grown by at least 25% since the beginning of 2018. During 2020, the rate of growth was moderated, but with the economy expected to bounce back strongly, it’s expected that rents will start trending upwards once more, especially in areas of increased demand, such as the city center and the southern seaside suburbs of Athens.
Of course, in order to be able to command a higher rent than the market average, some funds should be invested towards renovating and improving the property’s offering. During the past few years, tens of thousands of properties were used through short-term rental platforms, like Airbnb. As a result, most of them are now modernizing and fully equipped. At the same time, competition in the rental market, means that properties with fewer amenities and of a lesser quality standard, are harder to be leased.
The price/rent index has also started to increase, an indication that the Greek market is becoming more and more geared towards renting. Based on data from Numbeo, the price/rent index stood at 20.2 in the center of Athens and 23.9 in the suburbs, at the end of 2019. Today, the price/rent index stands at 23 in the center of Athens and 25 in areas outside the city center. However, in Madrid the price/rent index stands at 24.36, in London and Berlin at 29, in Rome at 30.88 and in Paris at 42.