How the rise of electromobility is linked to the rise of Real Estate in Athens

In this article we analyze the connection that exists in Athens between the rise of the Real Estate market and the rise of electromobility.

The rise of Real Estate in Athens

First we will start with the Real Estate market. We have witnessed an unprecedented explosion in asking prices for properties for sale and to a slightly lesser extent in asking prices for rentals.

Within this market, Residential Real Estate holds the dominant position with a projected market volume of €985.2 billion in 2024. It is expected to show an annual growth rate (2024-2028) of 1.86%, resulting in a market volume of €1.32 trillion by 2028.

Demand prices in some areas of Athens seem to have reached a ceiling while many renovated properties are priced at new build prices, with buyers apparently preferring the latter.

We remind you that for the whole of 2022, the price increase compared to 2021 was 13.9% for Thessaloniki , 12.6% for Athens, 10.9% for other major cities and 8.2% for the rest of the country.

Investors' interest is also turning to new developing areas, mainly in areas where the metro network will be extended in the future (Line 4). An important example is the case of West Attica and its regions which show a significant increase in real estate sales prices. The trends seem likely to continue to be particularly upward over the next two years (2025-2026). Similarly, in the longer term, prices in areas of the city centre for year-old houses seem to show a decline, mainly in purchase prices and, by extension, in rental prices. 

It is worth noting that the most aggressive and forward-thinking real estate investors, looking ahead, have already turned their interest to provincial cities such as Patras and Ioannina, two cities known as "student cities".

Finally, with regard to the centre, areas such as Koukaki have been filled with "padlocks" and by padlocks we refer to the conversion of properties into AirBnb spaces. It is worth noting that the increase in the number of properties being converted and made available for rent through the Airbnb platform has created the need for state intervention. According to current developments it seems that the government plans to put a cap on the days that properties can be made available for rent via Airbnb. 

In our opinion, areas that have been filled with "padlocks" and areas adjacent to them will also be filled in the near future with charging stations with swappable batteries for electric motorbikes. 

Station with swappable batteries for electric scooters.

The relocation trend

In the aftermath of the coronavirus, an unprecedented pandemic, several changes are being reflected in a variety of ways. One of these is the trend to relocate for two important reasons:

1. The prolonged period of enforced quarantine within the home has resulted in many of us feeling a disgust for our space and a psychological need to change it. Here comes one of the factors for the rise of Real Estate. We should not fail to mention that a major factor is the Golden Visa.

2. The forced transition to remote working is here to stay. Many companies adopted a hybrid work model after the pandemic with a requirement for remote and on-site work for both economic and proven productivity reasons. In addition, the workforce of the digital nomad category has grown in our country. 

The link between Real Estate, Relocation trend and the evolution of electromobility.

We come to add a third reason, from the perspective of smart mobility and link it to electromobility. The configuration of new metro stations in the future in new areas, Real Estate, the technological development and rise of electric vehicles and finally, combined, a tendency to relocate many workers to new areas, we believe are extremely closely linked.

Google maps is now capturing new commuting options and the trend we see rising is one:

The use of an electric vehicle to commute to work on a daily basis, either independently as for example with an electric scooter, or combined with the use of electric skates and metro network.

The rise of electromobility

The "Moving Electric 3" programme is about to be launched in our country and all indications are that the wait of some is about to be rewarded in practice as the following changes stand out among the changes that are in place:

- The 1000 euro increase in the amount for vehicle withdrawal is now set at 2000 euros from 1000 euros.

- The size of the grant is now capped at EUR 9000 from EUR 8000.

- The maximum subsidy for the purchase of an electric motorcycle or scooter will be increased from the current €1,300 to €3,000. 

- The purchase of a home recharging point is subsidised up to a total amount of €500 and is optional.

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Our assessment is that as the Moving Electric programme continues in the future, the subsidy amount for the acquisition of an electric vehicle will gradually increase and new benefits and incentives for the transition to electric vehicles are likely to appear. Add to this the race of manufacturers who are competing by launching new models of electric vehicles.

 In 2024, the projected revenue of the electric vehicle market in Greece is estimated to reach EUR 336.8 million. Source: Statista – EV’s Greece

We would be remiss not to mention a problem that is being overcome every day and that is that of range anxiety or autonomy anxiety. Developments in battery technology show that charging times are decreasing and vehicle autonomy is set to increase to a very satisfactory degree, making electromobility a reliable transport option. In fact, the shift to increasing autonomy has been made to such an extent that it is not actually needed in all travel situations and we believe it is partly aimed at defeating the phobia associated with owning an electric vehicle.

 Electric vehicle autonomy trend 2022: Towards 400 km, with many above that. Source.

It's worth noting that we are closely watching the moves of some major car makers, such as Smart. The hugely successful vehicles that for over two decades have delighted the Greek buying public with their size will cease production from the summer of 2024. 

In addition, we see some new, small-sized electric vehicles (microcars) making their appearance on Greek roads at low prices, some of them from lesser-known manufacturers. 

These moves are deliberate and not accidental. Everything indicates that the buying public is turning to electrification as a matter of law and the car manufacturers are well aware of this. The knowledge comes from expensive research, data, cookies, legislation and buying trends.

Final conclusions

The rise of Real Estate in Athens is a fact. The extension of metro line 4 and the expansion of the public transport network into new areas creates new commuting and thus relocation options, combined with electrification. The trend for relocation combined with options for new flexible forms of work, such as hybrid or remote, are prevailing. 

All these factors combined with the rise of electromobility and the shift of drivers to electric vehicles are complementary and form a new landscape in smart mobility.

We remain keenly interested in developments in the electrification space and would like to read all your feedback. You can stay informed and express yourself on the Wheelnwater blog.