New trends and market forecasts
Major European economies are facing a situation that can only be compared to an electric shock. A number of economic sectors are under paralysis, which in conjunction with the global recession gives rather clouded prospects for the global economy to recover quickly. Incredible as it may seem, it is those countries, used to economic hardships and having vast experience in crisis management, who have the highest chances of pulling out of the coronavirus torpor and the aftermaths of the pandemic. Greece’s experience in this respect is quite fresh since the country was living in a crisis for a decade, using its best practices to stabilize the situation as quickly as possible. Of course, there are certain traps and problems in the Greek real estate market, which experienced property developers are well aware of. For example, now potential investors, who at the beginning of 2020 were eager and ready to finance Greek projects, have frozen their activity. Before buying real estate, the investors take a closer look and seek to understand how the Greek economy and the world’s major economies, as well as the currency exchange rates, will react. The behavior of those foreigners, who have bought residential or commercial property within the last two years is also of interest. The actions of current owners and participants of property development projects can either motivate or put off new investors from the market.
All of them are trying to take independent and thought-through decisions because they understand: real estate agents, realtors — all of them are parties in interest. To make the right one needs to seek the opinions of independent consultants. As a positive argument for Greek property owners, such experts put forward the enormous experience of the Greek property developers who have been working in a difficult economy for years. And this experience will be definitely used in the current crisis. According to the economic forecast, the Greek market will emerge from the recession, caused by COVID-19, with minimal casualties. Furthermore, currently, there is a commercial property for sale at very favorable prices, and the tax relief allows you to buy real estate in new construction projects without facing high tax rates.
Yet, one needs to understand, that the Greek real estate market will still face challenges and losses. First of all, the owners of holiday property will be affected – most of the landlords that are not businesses or professionals shall withdraw from the market. In fact, this is already happening, because a lot of short-term rentals on Airbnb cannot find clients due to a substantial cut in tourist flow. Many of the owners of such properties are trying to turn them into long-term rentals.
However, even this trend has a positive side: only the most skilled players will be able to stay afloat and strengthen their positions while being able to satisfy the new demands of their clients. Those demands will inevitably increase if for no other reason than because the safety criteria for the provisions of services has dramatically changed. The prices for the services rendered will also be revised.
This means that investors should become more careful while approaching the possibility of investment in real estate in Greece, as well as in the major EU economies. If before one could just settle with choosing a good location, now a deep analysis of the genuine demand is mandatory in order to decide which location and what kind of property is more profitable, where to buy a home, and where to look for commercial property for sale. This rule doesn’t apply only to a holiday property but to offices too.
In general, until the end of 2020, the situation with holiday properties and offices is to remain stable for investors.