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The crisis of the pandemic that plunges the Greek economy into recession has completely overturned the landscape and the real estate market. Purchases froze, Airbnb platforms collapsed and property owners, seeing the tourist season disappear and their incomes evaporating, return to short-term leasing as the market fills up with rentals again.
Signs of a pandemic in the Greek real estate market began to show in rental prices, which have begun to deflate especially in areas where prices had soared. This reduction is an instant reaction of the owners, who need immediate income to cover their obligations, while many rush to rent their property before facing large reductions.

A first survey of rental prices in the post-coronavirus era in 35 areas of Attica shows reductions of even more than 15%.

In Ano Kypseli the requested rental price of a house of 100 sq.m. from 8.4 euros per square meter in February, it landed at 7 euros per square meter in April, recording a decrease of 16.6%. In Peristeri before the pandemic broke out, the requested rental price reached 8 euros per square meter.

Now the rent requested by the average owners has been reduced to 6.8 euros per square meter, down 14.6%. The same picture is observed in Kato Ilioupoli with the requested rent reaching 7 euros per square meter from 8 euros per square meter which was the price before the coronavirus invasion.
The areas that will record the first rent reductions in the post-coronavirus era are mainly areas of the center of Athens such as Agios Nikolaos, Ano Kypseli, Ano Patisia, Pedion tou Areos, Plateia Amerikis, Plateia Attikis, Gyzi, Kolonos, Kypseli, Sepolia as well as many neighborhoods of Kallithea and Neos Kosmos that do not border Koukaki.

Rents are also expected to fall in areas that are not top destinations and were the last to enter the Airbnb market. Most of the owners of these properties will return immediately to the long-term - contractual leases and / or will proceed with the sale of their property after the big loss that comes from 2019 and peaks in 2020.
Many areas of Attica where rents are already at the highest price level such as in the southern suburbs and specifically Paleo Faliro, Nea Smyrni, Glyfada, Alimos and Voula.

Market experts estimate that the more properties return soon to long-term leases, the more intense will be the reduction in rent requested, especially after the increase in rental fees observed since the summer of 2019.

Also, many funds that have invested in the purchase of housing and / or foreign investors who do not plan to visit our country, mainly Chinese (golden visa) will offer their properties for rent so that they can have a return on their investment and can pay. property costs in Greece.

From explosion to fall

The increase in rents over the last two years has been explosive. In 2018, the average rent in the region of Attica increased by 7%, while in 2019 it is estimated that the market ran at an annual growth rate of 10%. Especially in the center of Athens, rents have jumped by an average of 20% - 30% over the last two years, while in the areas outside the center the counter showed increases of 10% - 15%. In the pre-coronavirus era, the rental of an apartment suitable for a family of 90 sq.m. - 110 sq.m., in areas of the eastern, northern and southern suburbs, cost from 650 euros to 850 euros, ie almost as much as an average monthly salary.
In fact, "there were many cases of property owners whose lease agreement with the lessor expired in 2018 and was tacitly extended for 12 months and to accept the further renewal of the contract they asked the landlord to accept an increase of even 35% - 40 % in relation to the initial lease three - four years ago ".

Before the pandemic broke out, market experts estimated that rental prices would remain on an upward trajectory in the first half of 2020, but in the second half of the year, according to them, "we would see the first reductions as in many cases we were already at the highest point of prices and we waited for their regulation ". However, the coronavirus that led to a lockdown completely upset the landscape in the real estate market.
 

In Thessaloniki

Declining trends in the prices of the requested rents have been observed lately in Thessaloniki and in the big cities. Market data show reductions of up to 18%. Especially in Thessaloniki in the center the rental prices of apartments 90-100 sq.m. construction from 2000 onwards are reduced by 16.6% compared to February, before the pandemic broke out, in Nea Paralia the requested rents record a fall of 18%, in Lefkos Pyrgos the reduction reaches 11.29% and in Ano Poli 10%.

In the center of Patras the requested rental prices of houses appear reduced by up to 15%, in Kalamata a decrease of 12% is recorded, in Lamia 10% and in Heraklion of Crete the reduction reaches 12%.

SOURCE: THE NEWS