Negotiations are getting more difficult now. between contractors and landowners due to high costs of materials and financing; With proportions consideration In its leading municipalities Athens To move clearly below 40%, between 32% – 39%.
Her picture The amount has remained the same over the previous 12 months, While pressure movements are expected, especially after the State Council’s decisions on building heights (293/2024 and 310/2024, decisions of the Fifth Circuit). The provisions are also unconstitutional. Exemption from construction worker for large windows and attics 50% From the basement etc. effectively limiting the builders’ ability to provide additional square meters.
This is referred to as Latest GEOAXIS – Earth Observatory 2024, Land values are expected to continue to rise over the next 12 months, but at a lower intensity. In any case, according to real estate consultancy, The land market is not experiencing bubble conditions. As the imbalance between supply and demand for newly built apartments supports construction activity. The big “bets” are the possibility of a reset in interest rates and the recovery time of land values in the northern suburbs.
The observatory examines Five main areas are Ampelokipos, Marousi, Palaio Faliro, Peristeri, Holargou. As it turns out, it is registered to For the sixth consecutive year of increase in potential sale prices of land plots. Growth was measured on average at 9% compared to Q2 2023 And to 15% compared to the second quarter of 2022, which reveals the dynamics of this particular market.
The largest increase of more than 11% was recorded on plots with a construction factor of 0.8 inches. Marousi with an average potential sale price in the second quarter of 2024 of 900 euros per square meter. Next is his area. Old Valero With plots with a building factor of 1.4 also recording an increase of 11% and an average price of1,547 euros per square meter.
high demand
The relevant study indicates that “the high construction activity cycle that opened after 2018 continues, as demand for undeveloped plots or plots with old buildings is booming for the construction of newly built apartments.”
The main reasons fueling the current demand can be traced back to:
- And in the backlog of housing requests that were not met due to the economic crisis of the past fifteen years
- The immediate availability of capital is highly liquid, along with the presence of undeclared incomes among the middle class.
- To the new reality of working from home.
- In the qualitative and technological obsolescence of a large number of constructions before 1980.
- Including apartments in investment products.
- In the ability to generate returns through short-term leasing.
- In eliminating and distributing investment risks through the purchase of real estate.
At the same time, negotiations between developers and landowners have become increasingly difficult, as rising apartment sales prices are offset by rising construction and financing costs. Today, the average lending rate is around 6%.
According to ELSTAT, the cost of raw materials for new buildings is reflected in the Material Price Index for New Buildings. The average index for the 12-month period April 2023 – March 2024 compared to the corresponding index for the 12-month period April 2022 – March 2023 showed an increase of 6.6% compared to an increase of 11.3% recorded when comparing the previous corresponding 12 months.
Since the beginning of 2018, it has been running New buildings, mainly located in medium and high-end areas. (Agia Paraskevi, Paleo Faliro, Glyfada, Voula, etc.) where plots were bought cheaply during the crisis and compensation rates, when agreed upon, were not exorbitant.
the These new buildings have in common the fact that they are largely self-financed and offer high housing standards in specially designed architectural constructions.mainly in terms of its aspects and energy footprint. In terms of trends, in the residential land market last year, construction contractors re-evaluated their investments in light of the recent decisions of the State Council, rising construction costs, borrowing, the possibility of recession and discussions of higher compensation.
But the truth is that in relation to the past and the system that was applied in relation to consideration in the first decade of the twenty-first century, that Landowners who held onto their plots after 2006 are still the biggest losers, as the total cost of building on the plot has risen. Significantly with the introduction of VAT from 01/01/2006 on the delivery of newly built properties, while the imposition of ENFIA has burdened planning accordingly.
In general, compared to what was in effect until 12/31/2005, the landowner today will get almost one smaller apartment on every plot of land larger than 1,000 square meters, the study indicated.
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