Rental prices are high

of Eleni Botas

Rental prices have soared, which in many cases are 20% to 25% higher than the average mortgage installment.

This is the reason why, according to market experts, many, while looking to rent a house, are considering buying a home.

According to Engel & Volkers executives, in the last two years those who choose to buy real estate are those who had money and did not know how to use it. So they chose to proceed with the purchase of real estate which is a safe and secure investment.

Many also believed that Airbnb would end, but this was refuted. After the downturn that took place last year, this year it is moving upwards while every thought that existed from owners to “turn” their property from short-term to long-term lease, was abandoned.

This is the reason why rental prices record significant increases of 12-15%, while there are areas in the center where rental prices have increased by as much as 20%.

The explosive rise in rents in fact tends to “give birth” to a new portion of buyers, who will prefer to pay instead of rent …. the installment of their mortgage.

The increase in rents, results today in Attica the rent of an apartment suitable for a family, in areas of the eastern, northern and southern suburbs to cost from 650 euros to 850 euros, ie almost as much as an average monthly salary.

It is indicative that according to a Eurostat survey for the year 2019, 62.1% of tenants in our country spent more than 50% of their disposable income on housing costs (rent, utility bills, etc.).

All the above data, depending on the fact that the sale prices of real estate are undervalued at a rate ranging from 25% to 35% compared to 2007, but also due to the fact that rental prices, compared to the monthly mortgage installment , in many cases are 20% -25% behind, are the main factors that lead the real estate market to the market …. from renting a house.

It should be noted that the requested rental prices from 2012 to 2017 recorded a decrease that reached 25.5%, while in 2018 they returned with an increase of 8.4%, while in 2019 the rent growth rate reached 10%.

In fact, in the center of Athens, where the largest increases are recorded, rental prices have increased by 20% -30% on average over the last two years, while in areas outside the center the corresponding increase is estimated to be around 10% – 15%.

According to the latest data from Spitogatos for the third quarter, in the northern suburbs the increase in rental prices reached 10.5% with the average monthly rent approaching 950 euros for an apartment of 100 sq.m., while in the first quarter of the year did not exceed 880 euros, while in the second quarter of 2020, the average rent in the northern suburbs was 845 euros.

In other words, the prices increased by 100 euros during the pandemic. In the south the average rental price is 10.2 euros / sq.m. increased by 2.1% on an annual basis, while in the western suburbs to 6.95 euros / sq.m., from 6.63 euros per square meter.

The largest annual increase is recorded in the suburbs of Piraeus with 14.7%. Now the average rent is close to 6.9 euros / sq.m. from 6 euros / sq.m. a year ago.

On the contrary, in the eastern suburbs there are significant increases in the requested rents, with 7.3% on an annual basis, with the average price now reaching 7 euros / sq.m. from 6.45 euros / sq.m. a year ago.