An extensive study in Athens, Greece, has revealed a significant difference between the predicted rental prices by landlords and the actual prices tenants are willing to pay.
The study, which collated data from the Spitogatos Insights online classifieds network and the annual report of the real estate agency network RE/MAX Hellas, found that the gap could escalate to as much as 35%, more so in districts like Chalandri, Marousi, and Agia Paraskevi.
A Gap in Rental Expectations
In these areas, property owners have high expectations for rent prices similar to those in the upscale district of Kifisia. However, research shows that tenants have an opportunity to negotiate lower rents due to the lack of knowledge among property owners about the potential rental value of their properties or their overestimation of demand at their quoted prices. This information gap creates a window of opportunity for tenants to take advantage of during rental negotiations.
The Potential for Negotiation
There are suburbs in Athens, such as Halandri, Marousi, and Agia Paraskevi, that advertise rental rates similar to the ones in the more expensive district of Kifissia. The same trend can be observed in areas like Egaleo and Haidari, where the advertised rents are comparable to those in popular neighbourhoods in Piraeus. This significant difference between the asking price and the actual rent provides an opportunity for prospective tenants to negotiate lower prices.
Information Deficit Among Property Owners
The property owners’ inflated expectations can be traced back to the house price rally in Athens, which has spurred them to maximize their monthly income. The study underscores a prevalent lack of information amongst many landlords regarding the actual potential rent of their properties, attributable to several factors. These include inadequate market research, limited access to data on current rental prices, and a mistaken belief in demand at their asking prices.
The implications for both property owners and tenants in Athens are profound. Uninformed property owners may be setting their asking prices too high, thereby losing out on potential income. Conversely, tenants can exploit this knowledge gap to negotiate lower rents, thereby saving money. The study also brings to light the challenges tenants face in finding affordable rental properties in Athens. The stark disparity between asking prices and actual rents suggests that many landlords are not in sync with the market, making it a Herculean task for tenants to find properties within their budget.
However, by understanding this gap and using it to their advantage during rent negotiations, tenants may be able to find more affordable housing options. The study underscores the need for better information and market research for property owners in Athens. By having a more accurate understanding of the rental market, property owners can set realistic asking prices and attract tenants more effectively. Tenants, too, stand to gain from this research by being aware of the gap between asking prices and actual rents, enabling them to negotiate better rental agreements.
To sum up, the study reveals a significant gap between the expected rent prices by property owners and the actual prices tenants are willing to pay in Athens, Greece. By understanding this gap and using it to their advantage, tenants may be able to find more affordable housing options in Athens.
