Student housing in Greece is becoming more expensive
Greece has seen a rapid increase in the price of student accommodation. This is not only the case in the country’s major cities but also in smaller towns.
A standard situation for the property market in almost any country is a seasonal increase in rental prices in cities with a high concentration of educational institutions. In this case, the incentive for price increases is the demand from students. In Greece, there are two major cities with a high concentration of students. However, in the second half of 2023, the situation in the country worsened as rents for students also started to rise outside these centres, such as in rural areas.
Geoaxis has analysed the changes in the student housing sector. According to the report, rental prices for such properties will have risen by an average of almost 19% by 2023. This compares with an increase of 62% over the last 10 years.
The situation is most difficult in large cities:
1. In Athens, the cost of renting student accommodation increased by almost 24% to around 9.2 euros per square metre by 2023. Since 2014, the increase has been 80.4%.
2. In Patras, it will cost students an average of €8.7 to rent a square metre – an increase of around 27.5% since 2022. Overall, prices have risen by more than 80% in 10 years.
3. The annual price increase in Thessaloniki is around 23.3% (€8.5 per square metre of accommodation). The total increase in prices since 2014 is 68%.
4. The situation is slightly better in Heraklion, where the rental price per square metre is 7.7 euros, an increase of 16.5% compared to 2022.
It is worth noting that a typical situation in student accommodation is the eviction of tenants during the tourist season. Property owners want to make as much money as possible from holidaymakers and offer them short-term rentals. This specificity complicates the already difficult situation of students, for whom the market supply is very limited, and the demand is high.
The situation in the short-term rental market
Another reason for the current situation in the student housing sector is the decreasing number of apartments. Analysts estimate that around 15-20% of the housing previously intended for students is now used for short-term rentals. Weak sector regulation has long been a concern for the Greek authorities. The government is considering introducing new rules for participants in the short-term rental market. The first step would be to distinguish between large owners or companies and private owners who rent out their properties on a regular basis. These categories will then be subject to separate regulations.