The housing crisis in Athens seems to be deepening, as the real estate market remains trapped between the lack of new construction and the overvaluation of old homes. The president of the Attica Real Estate Association, Lefteris Potamianos, speaking to Tornos News, points out that “old and second-hand apartments currently have remarkably high values, even compared to newly built ones.”
The image of the capital is characteristic. More than 60% of Athens’ homes are over thirty years old, with a large percentage dating from the 1970s and 1980s, without any substantial renovations. Despite the aging stock, sales prices are maintained at levels that are often reminiscent of newly built apartments, a phenomenon attributed to the constant demand for housing in densely populated areas.
According to real estate agents and analysts, the mismatch between price and quality has led to a distorted market, where a large part of the properties listed for sale or rent remain “unclaimed” for months. It is estimated that approximately 85% of the houses listed remain unsold for a period of six to twenty-four months.
At the same time, the shortage of plots suitable for development exacerbates the problem. In the center of Athens, plots of land over 1,000 square meters are fewer than 200, while in the southern suburbs they do not exceed 10% of the available stock. In areas with greater availability, such as the northern and eastern suburbs, reconstruction is proceeding at a slow pace due to high land values ??and limited interest from institutional investors.
Lefteris Potamianos, analyzing the current picture in Tornos News, notes that the dynamics of old apartments are not accidental.
“The increased demand for housing in urban centers, combined with the low supply of new properties, has driven the prices of old apartments to historic levels. Many buyers prefer these properties, as they are located in prime locations, close to transportation, schools and shopping areas, an advantage that new constructions rarely offer.”
The possibility of renovation is also a crucial factor, offering buyers the opportunity to shape the space according to modern needs, without incurring the high cost of purchasing a newly built property. “Investors see in old properties an opportunity for significant returns, especially through rental or short-term leasing,” adds Mr. Potamianos, underlining that second-hand apartments remain “strong assets, competitive and with increasing value in the current environment.”
But beyond values, the real estate market is also faced with structural obstacles. The many closed apartments, whether from Golden Visa purchases or from bank and servicer portfolios, remove valuable stock from the real market, limiting the options available to residents and investors.
In addition, social changes in recent years have dramatically increased demand: young people are choosing to become independent earlier, divorces are creating more households and the lack of student housing is fueling pressure on rental prices. The result is an urban stock that is insufficient to meet the needs of modern life, with the renewal of the housing stock now a strategic challenge for the country.
The president of the Attica Real Estate Association believes that “only with a coordinated policy to strengthen reconstruction and renovations can there be a balance in the market.” Until then, as the data shows, Athens will continue to rely on an old age of concrete, where old houses continue to shape the new reality of real estate.
