Real Estate: Increases in rents due to low availability



The pandemic is making a double impact on the household budget, since despite the pressure exerted on incomes by the health crisis, rental prices in several areas of Greece not only did not decrease but there was also an increase of around 5%, especially for apartments with up to two bedrooms. Market participants explain that the limited number of properties for rent is mainly responsible and the increased demand keeps the prices at pre-health levels, while many owners who had their properties for short-term rent do not turn them into long-term rent, refusing to commit at the moment. their property for at least three years, waiting for the end of the pandemic and to equalize this year’s losses with the expected recovery of tourism. The rental prices of apartments of about 70 sq.m. up to 110 sq.m. remain stable or even increased and low availability of real estate for rent is recorded, especially for properties up to 15 years old, ie for construction properties after 2005, mainly in Attica. Compared to previous years, most of the old construction properties are renovated and so the apartments that are now available are of higher quality. About the apartments up to 60-80 sq.m. prices remain high, while there is a demand for two-room apartments, because teleworking has pushed many households to look for homes with office space causing an increase in rents. According to Ioannis Revythis, of the real estate company Revithis & Partners, rental housing remain stable or in many cases show an increase of 5%, especially in most areas where there is a good transport network and mainly in homes of 10 to 15 years. He also emphasizes that the supply for such houses is not large, while on the contrary there is a large supply in commercial buildings and shops because the forced reduction of 40% has compressed the entire market of commercial premises and the climate is not expected to be reversed soon. He estimates that when there is a vaccine, there will be a rapid increase in tourism and therefore an increase in demand for short-term leases. Finally, he notes that those who rented their properties in the short term until today only 20% have returned to long-term leases. The reasons from 2018 and the data show that this trend is not stopped by the pandemic. Therefore the immediate need for housing, the accumulated demand, the non-existence of new buildings and at the same time the non-granting of new mortgages by banking institutions led to the current image of the real estate market in terms of leases. According to market participants, the growth rate of rents is expected to continue in 2021, but at much lower levels than in previous years. A key factor is the course of the pandemic, where the improvement of the health crisis will restore tourist accommodation, further increasing the already existing problem of reduced supply. However, market executives see, depending on the region, a reduction in asking prices in order for landlords to seek immediate lease. It is also predicted that the demand for rental housing will be increasing due to the inability to buy real estate from the middle class. Low availability According to Themis Bakas, from the real estate agency E-Real Estates, “the low availability of real estate is explained as follows: most apartments have been rented in previous years and the available properties are now mainly those that either the owners had aimed at short-term lease, or the property was rented out and to increase the requested rent they were renovated “and adds that” his properties up to 15 years old in previous years they were left unclaimed, either they were rented and the tenants renew the lease all these years, or with the restart of the real estate market they were sold “. He notes that the demand for rent is stable, with those interested in searching for a home aiming at the opportunity, or the owner who will negotiate the requested monthly rent. It is noted that in 2018 the average rent in the region of Attica increased by 7%, while 2019 it is estimated that the market had an annual growth rate of 10%. As for the center of Athens, where the largest increases were recorded in the last two years, rental prices had increased by 20% -30% on average and now the levels remain about the same despite the pandemic. An illustrative example of an increase in the maximum rental price, according to the real estate E-Real Estates, is Victoria Square where in 2019 the requested rental price of a studio apartment was from 170-260 euros per month, while today the requested rental price (fully renovated) ranges from 280 euros to 350 euros per month. In Koukaki the monthly rental cost for a studio apartment ranges from 320 to 450 euros and the apartment from 450 to 600 euros. In the area of ​​Neapoli-Museum, prices record increasing trends for studios and range from 300 to 450 euros, while rental prices for apartments range from 450 to 520 euros per month, in contrast to 2019 which ranged from 420 to 470 euros per month. .Follow it on Google News and be the first to know all the newsSee all the latest News from Greece and the World, at



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