Factors Driving Up Purchase and Rental Prices
The market for small homes has been on a steady upward trend in recent years, with studio apartments and one-room flats recording significant price increases. This trend is particularly evident in Alexandroupoli, where demand for small apartments remains high while available supply is insufficient to meet market needs.
Although it may seem paradoxical at first glance, smaller properties are often more expensive per square meter than larger—and in many cases higher-quality—apartments. This reflects a new reality: many buyers and tenants are no longer choosing the home they would ideally like to have, but rather the one they can afford.
Limited Construction Activity
One of the main reasons for rising prices is the limited construction activity of the previous decade. For a long period, very few new homes were added to the market, leaving the available housing stock—especially smaller properties—in short supply.
At the same time, rising construction costs have added further pressure. Common areas, kitchens, and bathrooms have roughly similar construction costs regardless of an apartment’s total size. As a result, in smaller homes these costs are spread across fewer square meters, increasing the final price per square meter.
The increase in building material costs further reduces developers’ margins, forcing them to sell newly built properties at higher prices.
More Single-Person Households
The growing number of single-person households also plays a significant role. More people are choosing—or are forced—to live alone, while shared housing is still not a particularly common option in Greece.
Small apartments are primarily sought after by students, young professionals, people with limited incomes, and workers who relocate for employment reasons. In recent years, another trend has emerged: older residents from areas of Northern Evros are purchasing small apartments in Alexandroupoli to meet future housing needs after retirement.
The Impact of Short-Term Rentals
The ability to use small properties for short-term rentals has also contributed to increased demand. These apartments are generally easier to manage, require less initial capital, and appeal to a broad range of tenants.
However, using them for tourism or temporary accommodation reduces the number of homes available for long-term rentals, further increasing pressure on rents.
Rent Increases of Up to 60% in Alexandroupoli
The change in rental prices for studios and small apartments in central Alexandroupoli has been particularly dramatic. According to local market observations, rents have increased by as much as 60% in some cases over the past five years.
For example, a small apartment that could be rented for around €250 in 2019 may now command €400. Rental prices of €400–450, which would have been considered exceptionally high just a few years ago, are now often regarded as reasonable—or even a good deal—depending on the property’s condition and location.
Limited Options for Households
The housing market remains under pressure, with limited options available, particularly for low- and middle-income households.
Larger apartments may have a lower price per square meter, but they come with higher overall rents and increased operating expenses, such as heating, cooling, building maintenance fees, and general upkeep.
With construction costs remaining high and demand for small properties continuing to be strong, there is currently little indication that prices will decline significantly in the near future.