The real estate market in Greece is fully recovering, as according to the latest figures published by the Bank of Greece, the real estate prices are recovering at an accelerated rate. Prices for apartments in the first quarter of the year recorded an increase of 4%, compared with an increase of 1,4% recorded for the whole of 2018.
It is characteristic that the increase in prices in the first quarter of 2019 compared to the corresponding quarter of 2018 was 4% for “new” apartments, ie up to 5 years old, and 3.9% for “old” over 5 years of age. For the whole of 2018, on the basis of the revised data, the price increase compared to 2017 was 1.8% for the “new” apartments, compared with a fall of 0.8% in 2017, while the corresponding increase for the “old” “Apartments were 1.4% in 2018, compared with a decrease of 1.2% in 2017. Finally, the analysis of data by geographical area shows that apartment prices in the first quarter of 2019 compared to the corresponding quarter of 2018 increased 5.8% in Athens, 3.9% in Thessaloniki, 1.9% in other major cities and 2.6% in other areas of the country. For the whole of 2018, based on the revised data, the average increase in apartment prices in the same areas compared to 2017 was 2.5%, 1%, 0.7% and 0.9% respectively.
For all the urban areas of the country, in the first quarter of 2019, apartment prices increased by 4.4% compared to the first quarter of 2018, while for the whole of 2018 the average annual growth was 1,6%, down from 1.1% in 2017.
Commercial real estate
In 2018, the nominal office prices for all Greece grew by 7%, compared with an increase of 1.8% in 2017, according to data from the Bank of Greece. According to the same data, the nominal office prices of high standards recorded a 9% increase in Athens, 5.4% in Thessaloniki and 5.1% in the rest of Greece.
The rise in prices also affected rents, resulting for the total 2018 the average annual increase in office rents in nominal terms for the whole of Greece being 1.9%. The corresponding average annual growth rates of rents were 1.8% in Athens and 2.6% in the rest of Greece, while in Thessaloniki a marginal decrease of 0.3% was recorded.
Office rents in the second half of 2018 for the whole country recorded an increase of 0.6% compared to the first half of 2018./ibna