Real Estate Market 2022
- Vasilis Asteriadis | 22/12/2021 | 5 minutes
As we approach the end of 2021, we do not have a clear picture of the economy and the health crisis. The feeling of insecurity is noticeable and is reflected in consumer habits. However, in the real estate market, a trend has begun to emerge from both sellers and buyers / investors.
If someone analyzes this, will understand that the real estate market is influenced more by the expectations of the sellers and the buyers, rather than by the analysis and the depiction of the economic data. So, the new year will probably welcome the real estate market with an increasing trend.
According to the studies of the real estate agency Ellika, regarding the residences, it is obvious that the rental values of the properties have increased by 10% -15% compared to the previous year. In fact, the increase is even higher if the analysis is based on newly built properties for rental, that were built the last 5 five years. The main reason for this increase is the absence of notable houses for rental and this trend is expected to continue at least for the first semester of the 2022.
In the last quarter, by capturing the statistics of the real estate agency the trend that has been formed is:
• The average age of buyers of residential properties in the Center of Athens is 40 - 45 years old and on average they are looking for apartments that are 35 - 50 years old, with a total area of 80 - 110 sq.m. (2-3 bedrooms)
• However, the average age of buyers in the North and South suburbs is 10 years older, so they are in the range of 45 - 55 years old, who are looking for houses (apartments / maisonettes) which are 90 - 150 sq.m. (at least 3 bedrooms) up to 25 years old.
• The vast majority of potential buyers, buy properties with the aim of using them as residences and not for investment.
Clearly, although in 2021 the interest for investing in real estate through exploitation with short-term rental had weakened, in 2022 is expected to increase significantly, as tourism managed to recover this year and is expected to rise the following year too. Besides, the interest in buying a property for Golden Visa is expected to increase in the following 12 months. At this point, we have to mention that despite the increase in the real estate values that are noted the last months in our country and the expected increase in 2022, Athens remains one of the most economical (in terms of real estate) capitals of the European Union. In fact, according to the latest studies, it is not even in the top 20, that makes it very attractive to Golden Visa Buyers.
As for the office spaces, pandemic certainly affected the sales. The demand for new modern offices is noticeable both in the city center and suburbs. Of course, in a capital with a history of over 5,000 years, with continuous habitation it is not easy to replace the old buildings (many of them preserved) with newly built. Besides, the project of Elliniko will certainly affect this and it is also expected to develop modern office buildings in the northern part of Athens, on the axis of the National Road and Attiki Odos. At this point we must mention that both in our country and in the European zone, the prediction for the demand reduction, as a result of the remote work, was not confirmed.
Finally, the retail sector, although it has faced great challenges with the reduction of turnover, in the last 3 months of 2020 seems to recover, guided by restaurants and shopping malls. Our forecast is that the increase in the demand for stores will continue, especially after the first quarter of 2022.
As it was pointed out at the beginning, the real estate market in our country is mainly influenced by forecasts or psychology. We have experienced this either with the global financial crisis that entered our country 10-12 years ago or with the period of the Memoranda and the reaction of the real estate market 5 - 6 years ago. So, if anyone could make a prediction for the new year, it would be that:
• Leasing of good residential real estate will continue to be in demand pushing rents to increase.
• Buyers of real estate will continue to look for housing according to their expectations and will accept the high asking prices. Therefore there will be a noticeable increase in the value of residential real estates.
• The construction activity will be intense as well as the demand for the purchase of plots.
• In commercial properties for sale / rental, the ground floor spaces will start to be used and then the offices will follow.