There is a huge gap between the asking rental prices by landlords and the actual rental rates in Athens.

What has happened? An extensive study, which collated data from the Spitogatos Insights online classifieds network and the annual report of the real estate agency network RE/MAX Hellas has found a significant difference between the rental prices predicted by the owners and the actual prices that tenants are willing to pay.

Details. According to the study, the price gap could be as much as 35%, especially in areas such as Chalandri, Maroussi and Agia Paraskeva.

In these areas, property owners have high expectations for rent prices similar to those in the upscale district of Kifisia. However, research shows that tenants have an opportunity to negotiate lower rents due to the lack of knowledge among property owners about the potential rental value of their properties or their overestimation of demand at their quoted prices. 

Districts. There are suburbs in Athens such as Chalandri, Marousi and Agia Paraskevi that have asking rental rates in the advertisements similar to those in the more expensive Kifissia area. The same trend can be observed in areas such as Egaleo and Haidari, where advertised rents are comparable to those in popular areas of Piraeus.

The reasons. The high expectations of property owners can be explained by rising housing prices in Athens, which has encouraged them to maximize their monthly income. The research highlights a widespread lack of information among many landlords regarding the actual potential rent for their properties, which is due to several factors. These include inadequate market research, limited access to data on current rental prices and a mistaken belief in demand at their asking prices.

The consequences. Uninformed property owners may set asking prices too high, thereby losing out on potential income. Conversely, tenants can use this knowledge gap to negotiate lower rents, thereby saving money.

The study highlights the need for better information and market research for property owners in Athens. With a more accurate understanding of the rental market, property owners can set realistic asking prices and attract tenants more effectively.

Source: Greek City Times

Photo by Oleksii Khodakivskiy on Unsplash

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