The premium rental market in Attica is developing in a glorious field, as the continuous increases in rental demand seem to hit not only middle and low income families, but also families who own them.
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It is noteworthy that Athens, lagging behind Barcelona, Amsterdam, Berlin and Madrid during the first half of 2024, takes the “silver medal” for increases in the cost of renting high-end homes at the European level.
The dynamics of the luxury rental market are also reflected in Lamda Development’s plans.
Specifically, the listed company plans to expand into rental and management of housing. This is a new area of activity that will be activated in the coming years, initially in the four building complexes that will be built in Elliniko with funds from external investors and then expanded to include properties outside it, with the ultimate goal of a recurring income stream.
At the same time, Prodea Investments also invests in the residential sector, with the aim of developing homes for sale (Built to Sell – BtS) and rent (Built to Rent – BtR).
Because rents will continue to rise.
In the latest update to the World Cities Index, which examines the luxury housing markets of 30 cities around the world, analysts at international property consultancy and valuer Savills note that the rental market for these properties continues to outperform the comparable market for sales.
This is because high interest rates and difficulties/delays in the construction sector are contributing to increased demand for residential rental properties.
In fact, they expect rents to continue to outpace capital values for the remainder of 2024 and into the medium term, with supply remaining tight in the high-end real estate sector in many cities around the world.
“Higher interest rates are pushing more potential buyers into prime rental markets. This trend will continue to support demand and therefore higher rental prices for the rest of the year. However, the prospect of interest rate cuts in the second half of the year may encourage potential buyers currently renting to return to the sales market, easing price pressures on buy-to-let properties.
Athens in fourth place
Lisbon led rental growth alongside Dubai and Bangkok in the first half of 2024, according to the Savills index. In the Portuguese capital, rents rose 7.5% in the first half of the year.
Athens, Barcelona, Amsterdam, Berlin and Cape Town all saw increases of more than 3%, with Athens recording the fourth highest increase, +4.6%, over the six-month period. These increases were well above the average increase of 2.2% across the 30 cities tracked by Savills.
How do rental prices move in prime residences in Attica?
Currently, in terms of rent, the central areas of Athens and the southern and northern suburbs monopolize the ranking of the five most expensive areas in Attica for renting primary homes.
Vouliagmeni, based on data from the Spitogatos Price Index (SPI) in the second quarter of 2024, ranks first with an average asking rent of 18.8 euros per square meter. per month.
In Kolonaki, the average asking rent is over 16 euros per square meter, while in Paleo Psychiko the average asking amount is 16 euros.
The average asking price in Glyfada for luxury homes is between €15 and €16, while Voula is at about the same level.
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