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The first signs of change have already been seen with many landlords rushing to cut rent, revert to traditional long-term leasing, or try to sell their property amid the uncertainty created by short-term leasing. According to your data Panhellenic Network of Real Estate Agents E-Real Estates, the drop refers to both rents and purchase prices.
In recent years, sales prices have skyrocketed as Greece has become a pole of attraction for investment, mainly due to investment opportunities created in conjunction with growing tourism. The data shows that the highest percentage of properties purchased in recent years, either by national investors or foreigners, was real estate with the aim of exploiting them through short-term leases and obtaining a golden visa for foreigners, as well as buying independent buildings. for the creation of hotel units.
However, with them strict restrictions In travel, the insecurity of citizens to travel abroad and the consequent uncertainty that has been created in the tourism industry, the landscape seems to be changing.
However, as he emphasizes talking to APE-MPE or Themistoklis Bakas, President of the Panhellenic Network of Real Estate Agents E-Real Estate, signs of fatigue it existed even before the pandemic crisis. Differences are recorded in sales prices in April 2020 compared to February this year.
“Four to five months before the coronation pandemic, the real estate market in many areas that had experienced rapid growth began to be in demand and investors were looking for new areas.” Selective owner information, as well as logic to cover the 10-year “hassura” immediately, taking advantage of the instantaneous increase in demand that had been registered, had begun to negatively affects many areas of the center. The areas that could change its current image and return to the glory of the past tended to be red again in a short period of time, even in the precoronal era, “he emphasizes, adding that”the biggest reductions registered in areas where in the last period there has been a rapid increase in the required sale prices. A typical example is Hive, where the reduction of the requested sale prices varies from 9.18% to 20%, while there are also extreme reductions reaching -40%. At the same time, in terms of central athens 35% of the properties that the owners voluntarily reduced the requested price, are renovated properties and mainly small properties of s50m² “.
For example, according to E-Real Estates data, in the renovated 50m² Petralona apartment, the voluntary (non-negotiable) reduction of the requested price, within 2 months compared to the initial price in February 2020 is – 11.4%. The percentage reduction in the requested price is greater in Omonia -21.4% and in Gazi -16.6%. Even in Koukaki, the reduction in the requested price is -16.6%, that is, from the starting price of € 2,509 / m2, the price was reduced to € 2,109 / m2.
Source: INTIME
“Most of these properties have been purchased and / or renewed through loans or private equity. Their owners are aiming for immediate sale of the property, either in order to cover the remaining loan or save their initial capital, for fear of a sharp drop in sales prices, “says the president of E-Real Estates.
Prices are also declining in the southern suburbs, where prices have steadily increased in recent years. The reductions already reach an average of 9.1% with the largest reductions found in Ilioupoli, where the initial requested sale price was € 2,509 / m2 and has now been reduced to € 2,083 / m2.
“It just came to our notice then The peak of the reduction in sales prices is expected to register after the summer season. and gradually until the beginning of 2021 and will depend on the general economic environment, the internal dynamics of the middle class, which is almost non-existent, the attitude of foreign investors, as well as the real estate available for sale on the Greek property market and the price required . Let’s not forget that determining factor In the course of prices, the frequency and prices at which real estate portfolios, property of funds and banking institutions, will be channeled to the market, as well as the auction rate in the near future, will be the price. Real estate prices will certainly be affected by the start of the auctions. at lower values, while in many areas, even in the pre-Koronian era, it would function as a mound for increasing and / or preserving prices, “emphasizes Bakas. warns that “owners must be prepared, even to memories … 2008 in many cases. Many investors who have invested in real estate with a requested return of 5% to 6% are already looking for investments with a return of 8%. This difference will have an impact on the sale price of the property between -20% and -30% “.
As Mr. Bakas points out in the same media, most interested buyers ask reduction in sales prices even in acts that had been agreed upon before the coronation and were postponed. At the same time, “many funds” “freeze” their planned investments. In particular, it is a fund with funds from Israel that has already invested several million euros in the center of Athens and its planning for 2020 was to invest an additional 100 million euros in offices, accommodation, shopping centers and student flats, a few years ago. . days, he decided to stop any investment in Greece, “says the president of E-Real Estates, noting that” at this moment when our country has the shield advantage From the crown pandemic, low levels of fatal cases, with the help of 2019 results, investment opportunity, and a sense of public health insurance, must be established immediately. tax incentives for investors, to firmly support investment programs with foreign investors, so that existing investors remain in our country and do not resort to other markets, which plan to offer the above incentives when reflecting on the crisis, and especially to attract new investors to cover part of the financial gap that will be created due to the crown by reducing the need for bank loans. “
Source: INTIME
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