November 2019. The rules have changed, and the stakes are rising. The prices of an apartment exceed even the amount needed for a basic salary! A few years ago, if you told someone that rentals in the Koukaki district would be more expensive than those in the Ekali or Vouliagmeni districts, they’d just laugh at you, not caring about your feelings. But today, you’d be the one laughing. The short-term lease, the so-called Airbnb, has set up a price rally. How else can you explain that a 50 sq. m. apartment in Koukaki that has a price-rent of 1,000 euros per month? At the same time, a few kilometres away, in another fast-growing area, in Metz, a furnished studio of 32 sq. m. costs 650 euros per month. That’s awesome, isn’t it? Yes, that’s awesome. But it is the current reality that those looking for a home to stay are faced with.
Those looking for permanent residence discover that rents have reached unseen heights in many areas of central Athens. A characteristic is what was reported a few days ago in a newspaper, namely, “The News”: Apartments range in prices that are extremely difficult for an employee, a student, or even a couple to cover. Prices even exceed a basic salary.
There are many examples. A 50 sq. m. apartment near the Hilton hotel is rented for 900 euros. A studio of 44 sq. m. in Metz costs about 850 euros. The list goes on and on. You need a good stomach to look at the unreasonable demands of tenants who base their hopes on the possibilities offered by Airbnb.
Of course, Airbnb isn’t the only cause, if we want to be perfectly accurate. In the years of the crisis, which were neither one nor two, building construction was mercilessly hit. The lack of newly built properties, then, helps in the price increase of today’s rentals. Real estate has changed. The leader in the increase of prices is Athens and its centre. It is estimated that growth rates are as high as 15% per year.
The classic sign “ROOMS FOR RENT” has disappeared from the streets of Athens. The rules have changed, and the stakes are rising. And now, Koukaki district is more expensive than the Ekali or Vouliagmeni districts. It is unbelievable yet real.
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Frequently Asked Questions
Koukaki has become more expensive than traditional elite districts like Ekali and Vouliagmeni primarily due to the Airbnb boom. Short-term rental demand has driven up prices significantly, with landlords capitalizing on tourism and short-term rental opportunities. Additionally, limited new construction during the economic crisis reduced housing supply, further inflating rental prices in central Athens areas popular with tourists.
According to November 2019 data, a 50 square meter apartment in Koukaki costs approximately 1,000 euros per month. This price reflects the impact of Airbnb demand and tourism on the district, making it significantly more expensive than similar-sized units in other Athens neighborhoods.
Airbnb has had a substantial impact on Athens rental prices by encouraging landlords to shift properties to short-term rentals, which generate higher income. This reduces the supply of long-term rental housing and drives up prices for permanent residents. Combined with reduced construction during the economic crisis, Airbnb has contributed to annual rental price increases as high as 15% in central Athens.
Yes, as of 2019, rental prices in central Athens districts have reached unseen heights, with many apartments exceeding what basic salaries can cover. For example, a 50 square meter apartment near the Hilton costs 900 euros monthly, making it difficult for employees, students, and couples to afford permanent housing in these areas.
Beyond Airbnb, the main factor contributing to rising rent prices in Athens is the lack of new construction. During Greece's economic crisis, building construction was severely impacted, reducing the supply of new properties. This supply shortage, combined with increased demand from tourism and short-term rentals, has led to significant price increases in central Athens neighborhoods.
