[ad_1]
The Greek real estate market after the shock of the memorandum period, gave another pulse to the real estate market in the last 18 months, mainly due to the great interest of foreign investors for Airbnb, Golden Visa but also for placements in a market that had – and has – the growth prospect.
The truth is that the “explosion” of demand – on the verge of distortion – especially in areas of high tourist interest, had calmed down before the pandemic broke out, however data from the Bank of Greece confirmed that the upward trend in sales and prices is not reversible. The quarantine and the widespread shock to the economy, of course, could not leave the real estate market intact and the question that remains to be answered is how it will meet the national real estate market the next day. The updated ECB Report on European Economies is certainly a cause for concern.
The ECB sees negative developments in the real estate market
RELEVANT ARTICLES
YPOIK-Koronovios: Reduction of tax debts for owners receiving a reduced rent
Greece “sports” in property taxation – What is its position in the list of EU countries?
In the context of the general estimate that general investments will collapse this year due to uncertainty, the ECB estimates that the picture will be similar, especially in the real estate market. The problem will be even more acute in countries where stricter restrictive measures have been implemented for the coronavirus and it is somehow estimated that the combination of low income, low consumer confidence and higher unemployment will lower the investment rate in the real estate market in more than 2% compared to pre-crisis levels.
How prices move in Greece
In our country, market data confirm that demand and prices “slowed down”; however, there is no downward trend, except in certain areas of the Region. According to data from spitogatos, which covers the quarantine period, prices nationwide increased 4.8% compared to the second quarter of 2019.
Real Estate Searches Are On The Rise: Which Homes Do Stakeholders Prefer?
Even more promising are the messages for the coming months, as after the lock was lifted, property searches returned to the upward pace they had recorded at the beginning of the year, showing a 50% increase across Greece compared to 2019. Through the analysis of searches on spitogatos websites during the months of May to June 2020 and compared to the same period last year, however, there were some differences in the preferences and criteria used by visitors and more specifically in the choice of the category of house and area:
– In the housing subcategory, they choose more single-family / duplex homes than apartments / studios. The total of searches has increased, but the percentage of users looking for an apartment or studio has decreased and that of those looking for a house or duplex has increased. This applies to both sales and rentals, in Athens and Thessaloniki.
RELEVANT ARTICLES
Chinese investors protest that they bought real estate in Greece with a “golden visa” – They are not allowed to enter the country
Properties: The 10 areas of Attica with the most expensive new construction
– In Attica, while the highest percentage is looking in central Athens, the northern, southern and western suburbs, interest is growing in the east and the rest of Attica. The division of searches carried out in Attica shows that demand is shifting outward, as the proportion of those seeking a home in the eastern suburbs and the rest of Attica increases. When looking for homes for sale, along with the eastern suburbs and the rest of Attica, the southern suburbs also account for a larger share of demand than last year.
Growing trends also in construction activity
As for the construction activity, the “closed” May could have been marked by a decrease in permits by 9.1%, however the volume of new construction increased by 5.3%, while in general by 5 months the increase in permits and volume is of the order of 15.6% and 24.6% respectively, which shows dynamics. However, what the real estate market points out is that the expected changes in property taxation should be such as to eliminate disincentives to investment.
It is estimated that the rationalization of target-commercial prices with a permanent automated data system, as well as the abolition of the Complementary Tax that levies more than 600 million euros on natural and legal persons, is a decisive step in this direction.
[ad_2]
