Real Estate: Ten years of record prices for land in Attica

They are now recording the highest sales prices in the past decade Sale prices of land plots in AtticaAs demand returned to the housing market. In particular, recorded prices An increase of up to 20.35% in the center of Athens (chrome), while The average increase is estimated at 14.7%.. These figures are the result of a related analysis, conducted during the second quarter of this year, by Geoaxis, a firm of certified real estate assessors.

Based on the relevant land values ​​observatory maintained by the company, over the past 12 months, prices in five local markets in Attica (Ampelokipoi, Marousi, Paleo Faliro, Peristeri, and Holargos), recorded annually 5.3% increaseWhile the increase is much higher compared to the second quarter of 2021, reaching 14.9%. In fact, this is the fifth year in a row that land prices have increased, which is indicative of the dynamics of this particular market.

Over the past year, the largest increase (6.30%) was recorded by land plots with SD (construction factor) 0.8 in Marousi, at an estimated average price of 810 € / m², from 762 € / m². last year. Next is the Peristeri area where plots of land with an SD record of 1.8, up 5.35%, have an average price of 846 €/sqm. In Athens, specifically in Ampelokipe, plots with SD 3.6 were sold instead for 2,282 €/m2, representing an increase of 5.16%, while in P. Faliro, plots with SD 1.4 were sold valued at 1 ,395 euros / square meter, up 4.9% year on year.

An increase of 4.85% was also seen in plots for sale in the Cholargos area, with an average price of 1,125 €/m², from 1,073 €/m². a year ago. As Geoaxis points out, these prices refer to quite typical plots. “It is clear that plots of land with special characteristics in terms of location, projection, visibility and surface area are at the upper end of the sample, with values ​​several times higher up to 25%,” it is noted. The smallest plots are in Ampelokeppe (148 sqm) and Presteri (228 sqm), followed by Palio Falero (273 sqm), Marosi (330 sqm) and Cholargos (400 sqm). M). According to analysts, it is clear that It is now difficult to find undeveloped single acre plotswhile in most cases these lands have old houses or other structures inside.

“We found that since the beginning of 2018, buildings are being built again, which are mainly located in medium and high-level areas (Agia Paraskevi, Paleo Faliro, Glyfada, Voula, etc.) where plots of land were bought cheaply during the crisis and compensation rates were not Where agreed mindful, in terms of then-construction costs. These new buildings have in common that they are largely self-financed and offer high standards of housing in a proprietary architectural establishment, particularly in terms of their views and energy footprint,” says Yiannis Xylas, President and Founder of Geoaxis.

According to him, the cycle of high construction activity, which began in 2018, continues with a booming demand for land, or plots of land with old buildings, that can be demolished and newly built apartments built in their place. “The main reasons feeding the current demand can be attributed to the backlog of housing demand, which was not met in the years preceding the financial crisis, to the immediate availability of capital, coupled with the presence of undisclosed incomes from the middle class, but also to the new reality that shaped Work from home “. The demand for new constructions is also fueled by the quality and technological obsolescence of a large number of constructions that were constructed before 1980, the desire to spread investment risks through the real estate market, and the ability to generate returns through short-term leasing.

Compensation rates are fixed

Stability is the trend of the percentages of the consideration, that is, the percentage of the lot that is converted into apartments for the tenants, as long as the specific solution is chosen and not outright sale. According to Geoaxis, almost every homeowner today will have one Smaller flatCompared to what was true of the market until 2005 when the market peaked. In particular, in Marusi For example in 2005 it ranged between 45% and 55% of the plot, while today it ranges between 32% and 38%. respectively, In vineyards, the compensation rate ranges between 33% and 38%, compared to 40% – 50% in 2005..

At the same time, bargaining between developers and landowners is becoming increasingly difficult, as higher apartment sales prices, which should theoretically allow them to offer higher rates of return, are offset by higher construction and financing costs. In 2022, the ELSTAT material price index for new buildings increased by 11%, compared to an increase of 3.8% in 2021. However, in practice, the recorded increases are much higher and are estimated at more than 50-55% compared to 2020. Meanwhile , the average borrowing rate (provided the plant does not exclusively use equity) hovers around 5%. However, according to the geographic axis, Land prices are expected to continue to riseEspecially in the southern suburbs where there is more demand. The upward trend is due to an increase in demand and a decrease in supply.

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