Property prices in the broader Athens region and major urban centers across Greece continue to climb, driven by persistent demand for residential plots and limited supply, according to Geoaxis Property & Valuation Services, a certified appraisal company. While material costs in the construction sector have stabilized compared to recent years, labor expenses are on the rise.

The Managing Director of Geoaxis highlights that sustained interest in residential properties across the broader Athens basin and urban hubs, coupled with a scarcity of available land, is sustaining high price levels. Prospective declines in these prices, while uncertain, could potentially emerge within the next 12 to 24 months, as indicated by Geoaxis research.

Recent data from Geoaxis Observatory reveals a notable uptick in median property prices across key locales such as Ampelokipoi (Ampelokipi), Marousi, Palaio Faliro, Peristeri, and Cholargos, with an average increase of approximately 8.97% year-on-year from the second quarter of 2023 to the second quarter of 2024.

Since 2018, robust construction activity has been driven by demand for undeveloped land and properties suitable for redevelopment into new apartments.

Landowners retaining properties from 2006 onwards face heightened costs due to VAT implications on new property transactions from that year and ongoing ENFIA taxes.

Moreover, today’s landowners see reduced returns, with landowners receiving nearly one fewer small apartment for plots over 1,000 sq.m. compared to pre-2006 conditions.

In terms of construction costs, building a residential unit of Energy Class A in the Athens region commands 1,900 euros per square meter (plus VAT), while an Energy Class A+ unit costs 2,100 euros per square meter (plus VAT). Premium construction rates can exceed 3,000 euros per square meter (plus VAT).

These costs mark a significant increase of 40% compared to five years ago. Incentives are being offered to promote energy-efficient upgrades, reflecting ongoing efforts to align with environmental standards and sustainability goals.