Thessaloniki Real Estate: Local Market Trends
Today, the real estate market, both in Thessaloniki and throughout Greece, is actively gaining momentum: the current situation is radically different from that which was only a few years ago at the height of the economic crisis.
Thessaloniki is the capital of the Greek region of Macedonia, the center of production and economy of Greece. The city is also famous for its large seaport and the University of Aristotle, which is the largest higher educational institution in the Balkans.
Unlike the tourist destinations in Thessaloniki, life does not stop even outside the summer season: cultural events are constantly held here, offices of international companies, shops and boutiques are open. Here are the largest universities in Greece. Students, businessmen, merchandisers, company managers – all this is the target audience for long-term or short-term rental real estate. The city also actively develops cultural programs, holds exhibitions and festivals. There are countless seaside resorts close to Thessaloniki, making the local airport busy around the clock throughout the year.
Tourists who visit the city year-round, this is another target audience for short-term rental. And finally, many people of different ages from around the world decide for themselves that it is time to change the country, climate, pace of life and choose the coastal city of Thessaloniki, with good ecology, quality products, excellent climate, a large selection of schools and universities for children. It is such foreigners who are interested in buying real estate for permanent residence in Thessaloniki or its suburbs.
In 2018, the volume of Greek real estate transactions grew by 42%, and this year there is an increase in the volume of new buildings being built. The great popularity of Greek housing on the Internet for short-term rental and low prices per square meter have become the main reasons for such indicators. In 2018, transactions were completed with 26,700 objects. A year earlier, this figure was 18,800. In 2019, there has been a boom in demand for Greek real estate by both foreigners and the local population. Therefore, the period of stagnation in this market is behind and prices began to grow significantly.
Real estate sellers in Thessaloniki are no longer lowering prices, on the contrary – local owners have begun to bargain less, periodically withdraw objects from sale or increase the cost if they believe that their object is in a good location, which certainly should affect the increase in housing prices. In addition, the pricing policy was also influenced by the launch of the Athens-Thessaloniki express train, which takes less than four hours. Thanks to such logistics, living in Thessaloniki becomes even more convenient for those who have business in the Greek capital, a more convenient flight by plane, and besides, no one canceled the rich cultural program of Athens.
Actual areas to buy
Thessaloniki is usually divided into three main parts: west, center and east. The West is a residential area that has traditionally been inexpensive, it is densely built up and, thanks to affordable prices for new housing, many families have acquired quite large and inexpensive apartments there. The city center is a shopping, office, business and university center. On the promenade and on the central shopping streets, apartments have a very high cost.
A little further, in the university district, you can find more affordable options, but often such apartments require repairs, although in recent years there have been many companies specializing in buying old cheap apartments, their complete reconstruction and resale for short-term or student rent. The eastern part of Thessaloniki and the suburbs are considered prestigious areas where there are many shops, banks, offices, cafes and restaurants. Real estate prices in these parts are often two or more times higher than the western part of the city.
The most demanded area, as before, remains the historical center of the city and the territory around the universities – Tumba, Ano-Poli, Evangelistria. At the same time, the most expensive areas are Kalamaria, Pilea, Panorama, which, although less in demand than the historic center of Thessaloniki, but prices here did not practically drop even in the most difficult times on the Greek real estate market.
The average housing in these areas is represented by a more modern housing stock, when compared with the center, and prices vary in the range of 1500-2000 euros per sq.m. Prices for renovated apartments in the old houses of the center are now in the range of 1000-1500 euros per sq.m. Areas in the western part of the city, such as Devyavat and Dendropotamos, are now in very little demand. In such unpopular areas, you can still find apartments in need of repair at a relatively low price of 500-800 euros per sq.m.