Greek real estate: Residential rents are “galloping”.

A significant 5.9% average increase in house rents across the country in 2023 compared to the previous year, confirming initial estimates that the property market will continue to move upwards across the board this year .

Based on the data of completed transactions, carried out by the offices of the RE/MAX Hellas network, the largest real estate network in the country with 81 offices and over 1,000 real estate consultants, residential rents in Attica showed an increase of 5.3%, while in Thessaloniki there is an increase in rents by 6.2% and in the periphery by 4.6%.

The upward trend is clearly linked to the limited supply of newly built rental properties, the increase in investment flows, the rise of short-term leasing for another year and the lack of quality options in second-hand properties.

To all the above factors, if the difficulty of issuing mortgage loans with favorable terms is added, then it is perfectly justified that the resulting demand far exceeds the existing supply.

At the same time, from the data of the research of RE/MAX Greece, it appears that most tenants chose residences aged 16 to 20 years, while in the region, interest is directed to properties of a smaller area.

In any case, rent prices vary depending on the area and the quality characteristics of each property, with the most important factors being whether a residence is renovated or not, whether it has an elevator, natural gas heating, access to public transportation, etc.

The course of rents in Attica

In most areas of Attica, mainly properties with an area of 51 to 75 square meters and aged from 16 to 20 years were selected, while in the areas of the Northern suburbs, the largest properties with an area of 101 sq.m. up to 150 sq.m. were selected,  and in the South from 76 sq.m. up to 100 sq.m.

In the center of Athens, older properties aged 20 years or more with an area ranging from 51 to 75 sq.m. are in first demand.

In Western Attica and Piraeus, the demand concerns apartments between 16 and 20 years old, with an area of 51 to 75 sq.m., i.e. the same as in the center of Athens.

With regard to the quality characteristics of the properties that determine the choices of the tenants and consequently the prices in all the regions of Attica, the most important thing is that the property is renovated and that there is an elevator in the case of apartment buildings. Also 88 out of 100 tenants chose a residence that has natural gas heating, at least one parking space and is close to  Public Transport stations or stops.

Rents are skyrocketing in Thessaloniki as well

The tenants of houses in the area of Thessaloniki identify with the trends that prevail in Attica in terms of the surface area and the age of the properties they choose. In particular, they prefer properties with an area of 51 to 75 m2, aged from 16 to 20 years.

The differentiation observed in the choices of real estate in Western compared to Eastern Thessaloniki is noteworthy. In Western Thessaloniki, tenants are oriented towards properties between 16 and 20 years old and with an area of 51 to 75 sq.m.

On the contrary, on the East side, first in preferences are larger residences with an area of more than 101 sq.m. up to 150 sq.m.

When it comes to the quality characteristics of properties that renters are looking for in Thessaloniki, the presence of natural gas heating and elevators are in first place when it comes to apartments. Also, almost 9 out of 10 (percentage of 89% of the total) choose renovated properties and approximately 7 out of 10 (percentage of 67%) that their movement is served by the means of public transport.

Rents in the periphery

In the region, the properties that tenants are interested in are studios up to 50 sq.m., while high demand was observed in areas where there are universities such as Xanthi, Komotini, Larissa, Volos, Rethymno and Heraklion.

89% of tenants choose apartments in a building with an elevator and 84% choose renovated homes. 63% have a preference for furnished properties, which is justified by the size of the property which usually concerns student housing.