Greek real estate prices continue to tumble

12 July 2017

The fall in prices has been going on for seven years, since the recession hit Greece. The figure is astronomical: prices have fallen by 41.5% since 2008.

Greek real estate market prices fell by 5.1% in 2015, falling by 41.5% since 2008, before the recession hit Greece. Apartment prices fell by 5.4% in the fourth quarter compared with the same period last year, the Bank of Greece declared a slowdown after a contraction of 5.8% in the previous quarter. does not mean that the fall in prices is coming to an end.

"The cumulative decline of 41% is a considerable price adjustment, but in order to be able to say that we see the end of it, we need to stabilize three factors of influence: household disposable income, property taxes and an improved economic outlook, "said Ilias Lekkos, chief economist of the Bank of Piraeus. Real estate represents a large share of household wealth in Greece, the country with one of the highest rates of property ownership in Europe, 80% against 70% for the European average, according to the European Mortgage Foundation .

The sweet eyes of foreign investors

The decline in real estate prices has slowed down, down from 10.8% in 2013 and 7.5% in 2014, but while it appears that the slowdown would be even greater in early 2015, with a decline annual rate, which was only 4%, a relapse occurred in the second half. This is the other facet of the Greek crisis, which we were already talking to you this summer: villas and real estate of authenticity at broken prices.

What are the most popular spots? The emblematic Greek islands like Mykonos, Rhodes, Santorini, or Corfu. "In the Greek real estate market, you can find great opportunities," explained Alexandros Moulas, partner of the Savills network in Athens. In addition to Mykonos and Santorini, buyers also rush to Porto-Heli, a seaside resort that is considered by some to be a Greek declension of the "Hamptons". To pay less, some prefer to direct their research to the less popular and more remote islands.

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