Property prices in Greece

Property prices in Greece

One of the positive sides of the Greek crisis is that it has led to an increase in investments. Currently, there are numerous incentives available to buy a property. Real estate prices in Greece went down drastically in recent years. However, one needs to draw a line between the primary and the secondary housing markets (vacation properties).

At some point, the primary residential property market had to face a price drop of 40-50%, while the secondary residential property market experienced only a slight decline (at about 15 to 20%, for example in cases if the developed had financial troubles, required urgent sales, etc.). The prices touched bottomed a long time ago. And now the prices are rising again. The prices for land and real estate in Greece reached the levels of 6-10 years ago!

Why are the prices on the local secondary market not going down?

One of the main reasons why the prices on the secondary residential property market did not drop drastically and will not further go down is that this market consists mainly of vacation properties and land lots in tourist zones, which rarely face financial restrictions, and those properties are largely owned by foreigners. Even in the worst-case scenarios, like for example those that were emerging during the Grexit rumors, the owners would convert the prices to the national currency. The idea is, that the new purchase prices would be the same amount converted from EUR into the national currency. The third bailout package allowed Greece to start the reforms and to stop any Grexit talks once and for all, and not this scenario is considered by all experts as a non-realistic one.