Increase in demand for luxury properties and its shift from destinations like Mykonos and Rhodes to Attica, as well as other areas such as Lefkada, is observed by Greece Sotheby's International Realty.
Based on the demand data for the first half of the year from wealthy foreign buyers or High Net Worth Individuals (HNWI), it is clear that Athens is showing its true potential in 2023, as highlighted by Savvas Savvaidis, the president and CEO of the real estate agency, in an interview with "Kathimerini". "It has been apparent to our teams for some time now that our international clients are turning their attention towards the capital. However, the dynamics are now reflected quantitatively as well, with the Athens Riviera taking the second spot above Mykonos and the city center taking the fourth spot above popular island destinations," he explains. It is characteristic that the average requested price per square meter for distinguished properties in the center of Athens has risen to 8,200 euros, while on the coastal front, it has exceeded 15,000 euros per square meter. Athens is now on par with Mykonos, where the average price per square meter for beachfront properties is around 14,000 euros. Prices have started to resemble those of other top Mediterranean destinations. This can be attributed not only to high demand but also to limited supply. Savvaidis notes, "The stock of truly top luxury homes for sale in the country is much smaller than the public perceives. Especially in the category of seaside residences, the significant number of transactions in previous years has significantly reduced the available options."
Recent transactions by the agency may be indicative: for example, a penthouse on the 4th and 5th floors in Voula with a sea view on the Athens Riviera, measuring 227 square meters, in a complex with full service, was sold for 2,600,000 euros. Another penthouse in Athens Riviera, also in Voula, with a sea view on the 4th and 5th floors, measuring 292 square meters, was sold for 2,920,000 euros, while in the same area, a maisonette on the 2nd and 3rd floors with double-height ceilings and a park view, measuring 203 square meters, was sold for 2,000,000 euros.
Another trend that has been consistently observed in recent months, according to Savvaidis, is that buyers are now highly selective in terms of the specific characteristics of the property and are not solely impressed by the destination. "This is largely reflected in the closing rates, which, although have improved compared to 2022, still fall short of the performance in 2021," he points out, adding that "the market has much greater transparency than in the past, allowing buyers to quickly and accurately assess properties with relative ease, disregarding overpriced ones, especially when they have been on the market for a long time."
However, it is not only the Athens Riviera and the city center that are currently in high demand among the agency's foreign clients. In terms of demand, Corfu remains at the top of preferences, but for the first time, the Athens Riviera has surpassed Mykonos. The top five include the center of Athens and Paros, followed by Lefkada, Crete, Kea, Tinos, and Rhodes.
"By monitoring the behavior patterns of the past three years, it is evident that the pandemic brought forward sales that under normal conditions would have matured from this year until 2025. I have the feeling that many High Net Worth Individuals made purchases during the pandemic, expediting decisions that they originally planned to execute at a later stage in their lives," Savvaidis notes.
The analysis department of Sotheby's International Realty in Athens, seeking to provide a comparative view of the luxury property market throughout the Mediterranean, collaborated with Sotheby's International Realty offices in Cote d'Azur (France), Croatia, Cyprus, Italy, Spain, Montenegro, Portugal, and Egypt. According to this research, in most Mediterranean markets, the interest of particularly affluent buyers in luxury homes remains stable. Specifically, the offices in Italy, Greece, Cyprus, Egypt, and Croatia reported no changes in demand patterns from 2022 to 2023. Montenegro is the only market experiencing growth, while Sotheby's International Realty offices in Portugal, Spain, and Cote d'Azur reported a decrease.
However, there is a shift in demand within markets and a much more careful and thorough examination of properties before buyers make their final decisions.
