Private investors are making the most of the very high demand for student housing in various cities, not just in Athens and Thessaloniki; they are undertaking significant renovations of existing buildings – e.g. old hotels – in order to offer modern accommodation at competitive costs.
More than 500 apartments for students are estimated to operate nationwide, while new developments are also under way. The cost of renting these properties is 20% to 40% higher than a conventional residence in the same area or city and ranges from 300 to 700 euros, depending on the location and size. However, these apartments are fully furnished and equipped with all the necessary appliances for student accommodation (e.g. cooker, refrigerator, television etc), while the price also includes utility bills – i.e. the cost of electricity, water and internet access. If all of the above is taken into account, the prices are found to be competitive with those of a conventional apartment. At the same time, the private apartments are of modern standards, as they are located in fully renovated buildings and – perhaps most importantly – they facilitate interaction with other students; this is the reason why these properties record occupancy rates of over 95%.
“For the building that we inaugurated in the city of Xanthi last June, we already have a long waiting list, as it is fully rented. We are now planning two more student housing complexes in the same city, while also going ahead with Volos, Larissa and Rhodes,” says Konstantinos Markazos, CEO of Premia Properties. The listed company has already invested in buildings in Athens (Kypseli), Patra and Thessaloniki, while together with the one in Xanthi it operates over 255 student housing units.
Prodea Investments has developed similar properties in Patra and Thessaloniki and more recently in Kallithea. Another company investing in student housing is DKG Development, which is currently completing the renovation of a residential building in the Dafni area. The apartments are suitable for housing students and workers.
Zoia, an investment fund with Israeli interests, has been placed in Kallithea in a 1,100 sq.m. building near Panteion University, offering 24 apartments. Another building operated by Zoia in the Zografou area is also aimed at students.