Thessaloniki: Investment opportunities in the real estate market

of Eleni Botas

Investment opportunities in the real estate sector are “hidden” by the market of Thessaloniki, which has benefited in recent years from tourism with old buildings in the city center have been converted into tourist accommodation – boutique hotels.

Many of these buildings were vacant in previous years and were purchased at very low prices.

Besides, during the crisis, real estate prices in Thessaloniki decreased by 45.1%. This fact in the following years created investment opportunities for both domestic and foreign investors, either individuals or through investment schemes – funds.

According to the data of the Panhellenic Network – E Real Estates, there were not a few investors who, after the rally of the requested sale prices in Athens in 2017-2019, targeted the promising Thessaloniki with investment.

Demand in the center of Thessaloniki is constantly increasing, while apartment prices according to the data of the Bank of Greece, increased in the third quarter of 2021 compared to the corresponding quarter of 2020 by 8.7%, while based on revised data, In the first and second quarters of 2021, the average annual increase in apartment prices was 4.6% and 5.4%.

At the same time, Thessaloniki in recent years – before the coronavirus pandemic, had shown increased interest in homes intended to be “exploited” through short-term rental platforms – sharing economy.

This trend was created by the increasing numbers of tourists in the city and the changing seasonal patterns as the co-capital attracts the interest of tourists throughout the year.

The “freeze” of the short-term lease, brought about an immediate “freeze” in the purchase and sale of real estate with the aim of their immediate renovation and registration in the short-term lease platforms.

Demand-focused

The demand for the daughter of Thermaikos is concentrated in the center of the city, mainly in independent buildings aimed at the tourist exploitation from Venizelou Street to the Railway Station.

While, the interest has returned to the purchase of shops in the commercial “squares” such as Mitropoleos, Tsimiski, Nea Egnatia, the pedestrian street of Kalamaria, Gr. Lambraki, Ethnikis Antistaseos but also M. Alexandrou in Evosmos. In addition, it is worth mentioning that there is intense mobility from construction companies to find plots (may include old houses) for both purchase and consideration.

The interest is focused on the area above Agiou Dimitriou Street, with Tsinari starring, as there are plots and old houses that are for sale, while in the east the areas of Kalamaria, Charilaou, Voulgari, New Switzerland are very popular. In the west the interest is focused on Evosmos and Nea Politia.

Regarding the transfers of real estate in the Municipality of Thessaloniki, in 2021, the majority (90.91%) with a price of up to 100,000 euros. The largest percentage of transfers in 2021 concerned properties up to 95sqm which constitute 85.92% of the total transfers.

The popular square meters in all transfers of 2021 are from 51sqm to 75sqm, which constitute 29.56% (28.9% in 2020) of transfers.

In the second place of the preferences are the properties with an area from 31sqm to 50sqm which constitute 24.37% (25.76% in 2020) of the transfers, the apartments from 76sqm to 95sqm constitute 17.29% (15.19% in 2020), the studios – studios up to 30sqm which constitute 14.75% (15.11% in 2020) of the transfers, the apartments from 96sqm to 120sqm at 7.79% (8,065% in 2020) and only 6.62 % (6.88% in 2020) concerned transfers over 121 square meters.

Regarding the type of real estate, 78.57% of transfers in 2021 were for housing (79.09% in 2020), 16.13% for professional housing (19.23% in 2020).

Regarding the average price for the most popular property in 2021, as shown by the data, it increased by 30.05% compared to 2020 and 61.08% compared to 2019, reaching 699.99 euros / sq.m. .