By Nikos Rousanoglou

The central neighborhoods of Pangrati and Ambelokipi are expected to follow Exarchia as the latest neighborhoods in Athens to benefit from the Airbnb phenomenon that has already bolstered the finances of thousands of owners of aging apartments.

According to market players, over the past few months these districts have already seen a rise in demand both for properties for rent, and for purchase with the aim of making them available for short-term stays via the internet platform. Exarchia currently has the second-highest concentration of properties available via Airbnb compared to other Athens districts.

According to data from the independent non-profit Inside Airbnb, last June approximately 500 adverts for apartments in Exarchia were posted on the short-term rental site, a figure that is certain to have since risen. Pangrati was in 5th place with 296 properties advertised, followed by Ambelokipi in 6th with 269. The top spot was claimed by the area around Plaka. The neighborhood of Koukaki (which is adjacent to the Acropolis and Plaka) – due in part to the relative scarcity of available apartments and the small size of the neighborhood, was in third place with 343 properties listed on the site.

However, according to Kosmas Theodoridis, head of the network of real-estate offices Akinita Polis, prospective renters and especially property investors active in the specific market are focusing on Pangrati and Ambelokipi, as well as Exarchia.

These are areas that are near Athens’ main tourist attractions (Pangrati in particular) and which have many small, modestly priced apartments well-suited for the short-term rental market.

Good For Property Owners, Bad for Renters

This trend has begun to impact long-term rental prices as well as apartment availability. While a few years ago the properties available for rent (according to the classified adverts published on the property website spitogatos.gr) came to about 25% of the total; today the same figure is no more than 20%.

At the same time prices have been rising since 2015 thanks in part to the explosion of Airbnb rentals, as well as the growing tendency for more households to rent rather than buy property. According to data from spitogatos.gr, the average price for renting an apartment in central Athens is currently 7.33 euros per square meter per month, compared to 6.92 euros in 2016 and 6.3 euros in 2015.

As a result today rental prices are only 9.5% below the level they were at in 2011 (8.1 euros per sq. m) when the property market began its rapid fall as a result of the economic crisis.

Of course, if the current rate of growth of the short-term rental market continues, it is possible that it will create problems, in particular for university students who, due to the lack of dorms, every year lease thousands of small apartments in areas surrounding the center of Athens.

While, due to the crisis, recent years have seen a drop in the number of students moving to Athens from villages and provincial towns in order to study, recently demand has begun to rebound. As a result it is possible that there will be issues of scarcity in the future, particularly from the 2018-19 academic year onwards.

The areas of Pangrati and Exarchia (together with others such as Gyzi, Ambelokipi and Kypseli) are popular among students thanks to their plethora of small (50-70 sq m), reasonably priced apartments and their good public transport links.

Via Kathimerini.gr