Conditional · Score 68/100
This deal involves the purchase of a 260 m² building in Petralona with plans for conversion into multiple short-term rental units. While the price per m² is highly attractive, the project faces significant regulatory hurdles due to the current freeze on new short-term rental licenses in Athens.
Each dimension is weighted. Profitability carries the most weight, so a high price score alone does not lift the overall score by the same amount.
The price per m² is significantly lower than market averages, indicating strong value for a redevelopment project.
The structure requires a comprehensive full-scale renovation to meet modern living standards and the intended subdivision.
The building dates back to 1930, requiring careful inspection of structural integrity, masonry, and foundation.
Petralona is a highly desirable, rapidly gentrifying area with good connectivity to the centre.
The strongest route for this property is long-term rental. Gross yield on total invested capital: 6.6% against a required 6% (a 3.5% risk-free rate plus a 2.5% risk premium), which produces a score of 56 out of 100. As short-term rental the same property returns 5.8% against a required 8.5%, a score of 16 — not enough to justify the risk. As convert and sell the same property returns 14.7% against a required 13.5%, a score of 47 — also workable. No single route was requested, so every route was tested and the strongest one is reported here.
| Dimension | Score | Weight | Contribution |
|---|---|---|---|
| Price/m² vs market | 100 | 25% | 25.0 |
| Property condition | 30 | 10% | 3.0 |
| Construction quality & age | 30 | 10% | 3.0 |
| Sub-area location | 80 | 10% | 8.0 |
| Profitability vs risk threshold | 56 | 45% | 25.2 |
| Total | 68 | ||
Each route has its own required return, set by its level of risk. The overall score follows the best route, because that is the best option actually open to you.
The strongest route for this property is long-term rental. Gross yield on total invested capital: 6.6% against a required 6% (a 3.5% risk-free rate plus a 2.5% risk premium), which produces a score of 56 out of 100. As short-term rental the same property returns 5.8% against a required 8.5%, a score of 16 — not enough to justify the risk. As convert and sell the same property returns 14.7% against a required 13.5%, a score of 47 — also workable. No single route was requested, so every route was tested and the strongest one is reported here.
| Route | What it returns | Required | Score | Verdict |
|---|---|---|---|---|
| Long-term rentalBest route Gross yield on total invested capital | 6.6% | 6.0% | 56 | Worth pursuing |
| Short-term rental Net short-term-rental yield on total invested capital | 5.8% | 8.5% | 16 | Not worth it |
| Convert and sell Annualized net return on total project cost | 14.7% | 13.5% | 47 | Worth pursuing |
All figures in euro, rounded. The best route is long-term rental, so the income side shows rent.
| Property price | €380,000 |
| Purchase tax | €11,742 |
| Notary fee | €4,750 |
| Lawyer fee | €5,700 |
| Land registry fees | €2,280 |
| Broker commission | €7,600 |
| Total acquisition costs | €32,072 |
| Renovation & conversion | €352,559 |
| Total capital required | €764,631 |
| All-cash purchase (no financing) | €764,631 |
| Rent from unit I1 · 26.45 m² | €446/mo |
| Rent from unit I2 · 32.11 m² | €487/mo |
| Rent from unit I3 · 31.28 m² | €481/mo |
| Rent from unit I4 · 40.16 m² | €538/mo |
| Rent from unit A1 · 30.92 m² | €586/mo |
| Rent from unit A2 · 25.06 m² | €533/mo |
| Rent from unit A3 · 30.98 m² | €586/mo |
| Rent from unit A4 · 24.48 m² | €527/mo |
| Estimated monthly rent | €4,184 |
| Gross annual income | €50,208 |
| Net annual income | €50,208 |
| Net yield on total investment | 6.6% |
The finished product is a renovated apartment on an upper floor. Basement and ground-floor listings are excluded from the comparable pool, and the price per m² is taken from the upper part of the distribution, not the average — an average mixes renovated stock with properties that still need full renovation.
| Unit | Net m² | Comps | Price/m² | Apartment value | Monthly rent |
|---|---|---|---|---|---|
| I1 | 26.45 m² | 51 | €4,107/m² | €97,771 | €446 |
| I2 | 32.11 m² | 51 | €4,107/m² | €118,692 | €487 |
| I3 | 31.28 m² | 51 | €4,107/m² | €115,624 | €481 |
| I4 | 40.16 m² | 51 | €4,107/m² | €148,449 | €538 |
| A1 | 30.92 m² | 33 | €4,324/m² | €131,034 | €586 |
| A2 | 25.06 m² | 33 | €4,324/m² | €106,200 | €533 |
| A3 | 30.98 m² | 33 | €4,324/m² | €131,288 | €586 |
| A4 | 24.48 m² | 33 | €4,324/m² | €103,742 | €527 |
| Total | 241.4 m² | 8 units | €3,946/m² | €952,800 | €4,184 |
Below 45 m², rent is taken in euros per unit from listings of a similar size, not as price per m² × area. A kitchen, a bathroom and an entrance cost the same in a small unit as in a large one, so rent has a floor that does not fall with area.
The deal price (€380,000, €1,462/m²) sits 51.7% below the neighbourhood average (€3,027/m²). Neighbourhood range: €621–€8,333/m².
The rent estimate is based on 24 rental comparables of similar size (±40% of 33 m²) — compared against a single unit's size, not the whole building. Average: €16/m²/month, median: €15/m²/month, range: €11–€23/m²/month.
The property requires a full-scale redevelopment, as it is currently being positioned for structural conversion into multiple residential units rather than a simple renovation of an existing apartment.
| Cost item | Range (%) | Estimated (€) |
|---|---|---|
| Purchase tax | 3.09%–3.09% | €11,742 |
| Notary fee | 1.00%–1.50% | €4,750 |
| Lawyer fee | 1.00%–2.00% | €5,700 |
| Land registry fees | 0.50%–0.70% | €2,280 |
| Broker commission | 2.00%–2.00% | €7,600 |
| Total range | 7.59%–9.29% | €32,072 |
Standard transaction costs in Greece range from 7.59% to 9.29% of the property price (purchase tax, notary, lawyer, land registry and broker). Mid estimate: €32,072 on top of the property price.
Every figure above is the base case. The tables below show what happens if the market turns out weaker or stronger. The range is not an arbitrary percentage — it is taken from the actual distribution of the comparable listings.
| Scenario | Price/m² | End value | Net profit | Margin | Annualized |
|---|---|---|---|---|---|
| Weak market55th pct | €3,437/m² | €829,758 | €48,532 | 5.8% | 4.2% |
| Base, as reported75th pct | €3,946/m² | €952,800 | €169,113 | 17.7% | 14.7% |
| Strong market90th pct | €4,789/m² | €1,156,334 | €368,576 | 31.9% | 32.1% |
| Scenario | Monthly rent | Annual income | Yield | Vs threshold |
|---|---|---|---|---|
| Weak market40th pct | €3,579 | €42,948 | 5.62% | below 6% |
| Base, as reported60th pct | €4,184 | €50,208 | 6.57% | clears 6% |
| Strong market80th pct | €4,764 | €57,168 | 7.48% | clears 6% |
The project cost is identical across all three scenarios — only the revenue side moves. A renovation cost overrun is a separate risk and is not shown here.
Every figure above, and the score and recommendation with them, reflects the existing state only. The scenario below shows what changes if the building rights are exercised. It does not affect the score.
Why this scenario appears: The form marks the property as having unused building rights.
| Metric | Existing state | With rights exercised | Difference |
|---|---|---|---|
| Gross development value | €952,800 | €1,334,724 | + €381,924 |
| Total project cost | €764,631 | €918,631 | + €154,000 |
| Net profit | €169,113 | €389,399 | + €220,286 |
| Margin on sale value | 17.7% | 29.2% | +11.4 |
| Annualized return on cost | 14.7% | 21.2% | +6.4 |
| Project duration (months) | 18 | 24 | +6 |
| Monthly rent | €4,184 | €5,915 | + €1,731 |
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This report is based on algorithmic analysis of publicly available listings. It is not investment advice and does not replace professional due diligence. Figures reflect asking prices at the time of the scan, not completed transactions.