THE JOINT REPORT
Arbitrage and Yuvoh Analytics have published a joint report to provide big data insights and associated commercial commentary in Greece's residential market. Yuvoh has utilized its advanced artificial intelligence (AI) powered tools and machine learning (ML) models to collect and analyze publicly available property and related statistical data for targeted insights on the local residential market. Arbitrage's valuation and market research team experts have supported and guided Yuvoh's data scientists throughout the whole exercise and provided their executive commentary on the identified residential real estate trends, especially between the last quarter of 2020 and that of 2019 as a result of the pandemic impact in the market.
SUMMARY
In 2020, as a result of shutdown measures to contain the coronavirus pandemic, economic activity experienced a massive plunge as domestic consumption, demand for trade and services and supply of finance were severely disrupted. This had a profound impact also in residential real estate market. The government restrictions to social mobility brought disruption in the transactional activity, which we anticipate continuing until mid of 2021, when solid signs of the end of the pandemic crisis are likely expected.
The economic disruption in 2020 came as a contrast to the 2019 outlook, when the residential market continued its stabilized recovery with a gradual increase in housing prices throughout the country, especially in urban centers. The sector of short-term leases had played a significant role in this price recovery and activity in the sector, especially in the center of Athens but also in areas of tourist interest across the country. As a result, the transactions of residential assets had increased even in less commercial areas, especially in the center of Athens.
As a result of the pandemic crisis, there was a decline in residential property transactions, especially in the prefecture of Attica, which, in some Municipalities, exceeded 50% compared to 2019 transactions. Despite the negative impact on the housing sector, the quality housing stock retained its commercial value given the overall lack of modern and high-standard residential buildings. In specific cases, price increased based on design, location, quality, and wellness specifications.
The overall demand for short-term leases also decreased due to the impact of the pandemic containment measures on tourism and international arrivals. Consequently, many homeowners made their recently refurbished and furnished apartments available for long-term leases. This affected rental prices and generated quality rental opportunities in local markets, especially in Athens, Thessaloniki and other urban touristic destinations across the country.
You can access and download a copy of our related joint report in English here.