by admin The rate of home ownership in the country has shown a significant decline in recent years. In particular, during the period between 2005 and 2021, the percentage of home ownership in Greece fell from 84.6% to 73.3%, losing 11.3%, according to Eurostat data. The housing stock in Greece, according to Eurostat, for the year 2019 was 3,949,900 residences – houses. According to the official data of Eurostat and the published survey of the organisation Housing Europe (European Federation of Public, Cooperative & Social Housing), in the year 2019, the ownership rate in Greece was 75.4% (or 2,978,224 dwellings), either properties with mortgage or loan, or properties that do not have an outstanding mortgage or outstanding. Whereas, 24.6% (or 971,675 dwellings) of the properties were rented. In 2020, Greece ranked 19th among 33 countries in Europe, losing the 17th place it held in 2019. In particular, in 2020 the percentage of home ownership fluctuated at 73.9% and in 2021 at 73.3%. This means that Greece lost 2.1% of home ownership in the period between 2019 and 2021. This, in absolute numbers, corresponds to approximately 82,947 dwellings.
A large proportion of the above dwellings may have been lost due to the newly-introduced property auctions scheme, as well as due to the pandemic crisis. At the same time, some the property owners with debts to banking institutions may have willingly decided to pay off their debt by selling their property, choosing now to live in a rented residence. In addition, a portion of property owners, who probably do not live in their properties, may have decided to exploit such dwellings through short-term rentals and/or to sell them due to the increase in sale prices, to domestic or non-domestic investors. On the other hand, the suggestion that short-term leasing is the reason for the decline in home ownership, cannot be sustained. In the year 2019, which was also the best year for the short-term rental sector, the percentage of home ownership was higher compared to 2020 and 2021.
The decrease in the rate of owner-occupation combined with the decrease in construction activity in previous years has led to a steep increase in rental prices. According to the data obtained from the available real estate ads in the areas of Athens with the highest view rates from renting families (NOTE: these do not consist of official statistics and are totally subjective), the average rental price asked by landlords is 9.8 euros/sq.m. for an apartment of 80-110 sq.m. above the 1st floor and built after 2000. In particular, the lower average rental price asked by landlords in Athens is 8.15 euros/sq.m. and the highest average is 11.4 euros/sq.m. This means that a family is likely to pay rent between 815 euros/month and 1,140 euros/month for a residence of roughly 100 sq.m. In Athen’s Western Suburbs, Peristeri and Petroupoli, the average cost of renting a property of 100 sq.m. above the 1st floor, built after 2000, ranges from 730 euros/month and 750 euros/month.
In the areas of Central Athens, such as in Ampelokipi, the monthly rental cost ranges between 7.4 euros/sq.m. and 8.3 euros/sq.m., in Pagrati between 9.2 euros/sq.m. and 11.6 euros/sq.m. and in Neos Kosmos between 7.2 euros/sq.m. and 8.6 euros/sq.m. In the Southern Suburbs, rental costs are mainly determined by the property’s distance from the sea and its view. The average rental cost in Glyfada is 13 euros/sq.m., while in Voula at 11.5 euros/sq.m. In Nea Smyrni, the average cost of renting a 100 sq.m. apartment, above the 1st floor, built after 2000, reaches 945 euros/month; in Palaio Faliro 1,095 euros/month and in Kallithea 850 euros/month. Finally, in the Northern Suburbs, the average rental cost is 11.3 euros/sq.m. More specifically, in Maroussi, the rental cost ranges between 9 euros/sq.m. and 11.8 euros/sq.m., in Holargos between 10 euros/sq.m. and 14 euros/sq.m., in Chalandri between 10 euros/sq.m. and 13.6 euros/sq.m. and in Kifissia between 10 euros/sq.m. and 12 euros/sq.m.
Source: Eleni Bota, 9/1/2023