Real estate located in central Athens areas, such as Exarchia and Koukaki, are at the top of investor buying lists as property prices in the Greek capital remain on a sharp upward course, data shows.
New infrastructure projects, strong short term rental prospects and a vibrant lifestyle are driving investors to the two districts that have led a major recovery of the Greek real estate market.
Exarchia is well positioned to reap the benefits of changes taking place in the Greek capital. Located between the areas of upmarket Kolonaki and residential Kypseli, Exarchia is the bohemian neighborhood of Athens drawing artists, students and intellectuals. However, in addition to creative thinking and abstract ideas, Exarchia offers home buyers very practical real benefits.
One of the Metro line’s new stations is being built at Exarchia in a change that is expected to vastly improve living conditions in the area, while planned large-scale improvements to the nearby National Archaeological Museum are also expected to have positive knock-on effects on the neighborhood.
A few kilometers to the south and located under the Acropolis, Koukaki also holds a special place among Athens’ inner-city neighborhoods. Art, history and culture dominate the urban landscape of Koukaki, which is home to the Acropolis museum, the National Museum of Contemporary Art and a variety of bars and restaurants. Koukaki is also well served by public transport and is just minutes away from the Athens city center by foot. Apart from the prospect of capital gains in the two areas, property investors can also expect strong revenue flows.
Data shows that the number of properties offered for short term rental on platforms such as Airbnb in Exarchia and Koukaki are among the highest in Athens, according to a recent study put together by the Athens hoteliers association. As a result, demand for homes in the area remains robust, even though yields have been dropping. Recent price hikes have pushed down the annual return of properties in Exarchia and Koukaki to around xx% versus yields of around 8% in the western suburbs of Egaleo and Nikaia.
Who is buying and what are they buying?
Like in most parts of Greece, demand is highest for apartments above 75 square meters, while properties more than 20 years old are most sought after, industry research shows.
Both foreign and Greek property investors have been fueling demand in the two areas. The spectrum of active Greek players includes developers, such as Dimand, and private investors, while the list of foreign investors active in Exarchia and Koukaki is led by Chinese and Israeli buyers, including Zoia Real Estate. Chinese home buyers have been particularly busy investors in Greece in recent buyers thanks to the success of the country’s Golden visa program.
Prices on the up
Strong buying momentum from investors is driving prices up at a time where property is coming under pressure across Europe due to rising interest rates.
In Greece, the market is still catching up with ground lost during the country’s ten year economic crisis. And Athens is leading the way.
The latest data from the Bank of Greece, the country’s central bank, shows that Athens apartment prices soared 16.5% in the first quarter of the year, versus an average price hike of 14.5% across the country.