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Short-term rental market in Athens: where to buy to earn more?

Athens is the second city in Europe in terms of the growth rate of the number of tourists: according to estimates by research company Euromonitor International, the number of arrivals from abroad in 2017 increased by 10% compared to 2016 and reached 4.8 million. Due to the fact that prices real estate in the Greek capital has not yet recovered from the crisis (according to the Bank of Greece, today a square meter costs 44% less than in 2008), investors have the opportunity to earn more on short-term leases: according to analysts of the international real estate broker Tranio, the net profit in Athena 5-7% per annum compared to 3% in most major cities in Europe.

Real estate in Athens 893 listings on Tranio
Duplex penthouse, Athens, Greece for 250,000 € 250,000 €
Duplex penthouse, Athens, Greece
Total area 140 m² 4 bedrooms

Apartment for rent with a yield of 11.6%, Athens, Greece for 55,000 € 55,000 €
Apartment for rent with a yield of 11.6%, Athens, Greece
Total area 32 m² 1 bedroom

Apartment overlooking the Acropolis, Athens, Greece for 180,000 € 180,000 €
Apartment overlooking the Acropolis, Athens, Greece
Total area 85 m²

How to choose a property for investment? The most important selection criterion is the correct location of the object. In Athens, the main place of attraction of tourists is the Acropolis. The closer the object is to it, the higher its cost and rental price per night (ADR). According to the AirDNA service, which handles offers published on Airbnb, the 10 most profitable real estate properties in Athens are located within walking distance of the Acropolis. How to find a balance between the purchase price and the profit margin?

The cost of buying and renting real estate in Athens
ADR> 50 Euro
The most expensive daily rentals are in the historic center of Athens: the areas of Gazi, Keramikos, Kolonaki, Kukaki and Tisio. A square meter here costs an average of 1.5-2 times more expensive than on the periphery, and renting apartments costs tourists no less than 50 euros per night.

The most expensive and prestigious area – Kolonaki. Most of the luxury boutiques, cafes, nightclubs and restaurants are concentrated here. The area is located on a hill, so many of the houses have views of the Acropolis and the Likavit Hill. According to AirDNA data for May 2018, rent in Kolonaki costs an average of 61 euros per night. As the analysis of ads posted on the Greek portal Spitogatos, the cost per square meter in the area is an average of 3.7 thousand euros.

A more affordable option for both tourists and investors is the Kukaki district. It is adjacent to the historic area of ​​Plaka and located just 10 minutes walk from the Acropolis. Accommodation here is much cheaper for buyers and tenants: real estate costs an average of 2,120 euros / m², and rent in high season is 52 euros per night.

Penthouse with an area of ​​76 m2 with a panoramic view of the Acropolis can be bought in Kukaki for 200 thousand euros
Penthouse with an area of ​​76 m2 with a panoramic view of the Acropolis can be bought in Kukaki for 200 thousand euros
ADR 40–50 EUR
Rent is cheaper in areas located a few kilometers from the Acropolis: Ilicia, Neos Cosmos, Pangrati, Sepolia and Exarchia. To get from here to the historic center, tourists will have to use public transport or take a taxi. But the daily rent here is cheaper: 40-50 euros. The average cost per square meter, depending on the area, ranges from 1 to 2 thousand euros.

So, one of the most promising areas for investors is Neos Kozmos. It is located in the southern part of the historic center, half an hour walk from the Acropolis. Real estate here costs an average of 1,490 euros / m², and rent – 44 euros per day.

Spacious penthouse with an area of ​​170 m2 in the area of ​​Neos Kozmos can be purchased for 280 thousand euros
Spacious penthouse with an area of ​​170 m2 in the area of ​​Neos Kozmos can be purchased for 280 thousand euros
In general, real estate in this price segment is gaining popularity among tourists: according to AirDNA, by April 2018, the rental price here has increased by 13% over the year. The most impressive result is in the Sepolia area: here the daily rent of one-room apartments for the specified period increased by 57%, although the area is almost an hour’s walk from the Acropolis.

ADR <40 euro
The cheapest real estate is in the northern part of Athens: areas of Ambelokipi, Attica, Gizi, Kolonos, Kipseli and Patisia. So, from Patisia to the Acropolis will have to go more than an hour, and in the area the tourists are unlikely to find something remarkable – so the rent is two times cheaper here than, for example, in Kolonaki: only 30 euros per day.

Another low-cost area, however, is not in the north of Athens, but to the south-west of the Acropolis – Petralona. It can be interesting both to tourists and investors, since Petralona is located not far from the Acropolis (just 20 minutes walk), but renting and buying here are relatively cheap: an apartment is on average for 39 euros per day, and a square meter costs 1 550 euro.

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