Property sale prices in the capital outpace the rest of the country, while the same is happening with rents. The housing problem is becoming increasingly acute within Attica. The average speed of vehicles in the municipalities of the capital and especially on the central streets is decreasing: All this is because, based on official data, 60% of the private vehicles in circulation are registered in Athens and the surrounding municipalities.
These are the the consequences of the top-heavy state of Greece’s economic activity, that is, the overconcentration within Attica. This is not new, as it was and is a permanent problem for the country. What is worrying, however, is that the effort for the economic recovery after the multi-year recession is increasingly based on the “center” and less and less on the “periphery”.
The data show an increased degree of concentration of both disposable income and consumer spending in Attica, while in “good jobs” (managerial positions, etc.) the share of Athens can now reach even 70%.
The discussion on the need to draw up regional development programs with the ultimate goal of decentralization, retention or even transfer of population outside Attica has already opened at the government level, but the speed of deterioration of key economic indicators shows the necessity of immediate decision-making. The degree of pressure becomes even greater if one considers that these policies take years to pay off.
There are several reflections of this problem. The most basic element of a family’s cost of living is housing, on which the increase in Attica is much greater than in the rest of Greece. One just needs to check the Bank of Greece real estate price index. Today, the index for Attica stands at 106.7 points (data for the third quarter of 2024), which means that real estate sales prices are 6.7% higher than the corresponding ones in 2007, when the previous historic high in the country was recorded. The corresponding index for the other major cities in the country is at 93.2 units, which means that the gap exceeds 13 percentage points. Or, put simply, real estate prices in Attica grow much faster compared to the rest of the country. The picture is similar for rents, as they follow the real estate sales prices.
A possible solution to address the housing shortage may be the utilization of vacant properties, for which a series of policies are already being activated for 2025. And yet, Attica is found to have a relatively small number of such properties. Of the total number of homes declared as vacant based on Hellenic Statistical Authority (ELSTAT) data – amounting to approximately 2.277 million, but this number also includes holiday homes and secondary residences – only 23% belong to Attica. If the vacant homes available for rent or sale are isolated, then a small number of 152,000 are found in the capital, which is too small to meet the increased demand.
For 2024, ELSTAT will announce a new record regarding the number of private passenger cars in circulation, as it will approach 6 million. In 2023, there were 5.844 million private cars – a number higher than any other year – and of these 3.479 million (i.e. 60% of the total) belong to residents of Attica.
So, 40% of the country’s population may live in this city, but 60% of the vehicles circulate here, also taking their toll on living conditions.
The situation seems to be worsening instead of improving. In recent years, Attica accounts for some 38%-39% of the total number of employed people. Over 40% of disposable income is generated (with the percentage increasing in recent years), while he total consumer spending carried out within the prefecture has now exceeded 49%, while before the economic crisis (e.g. in 2008 and 2009) it was at 42%.
Attica employs 69% of the country’s administrative and commercial managers, 70% of software designers and analysts, 71% of sales managers, 54% of office workers and 47% of professionals.
Attica has low employment rates only among unskilled workers (33% of the country’s total) and among those employed in the primary sector, where the percentage drops below 5%.