Got a few thousand? Real estate being sold for pittance in Greece


August 16 , 2017 – Fort Russ News – 

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Vesti – translated by Inessa Sinchougova

There were times when prices in the real estate market in Greece grew at a very high rate. The economic situation of this country of the European Union seemed more or less stable, unemployment was low.

But in recent years, the country is mired in debt, unemployment is off the scale, and the income of the population has fallen rapidly. Naturally, this all negatively affected the real estate market in Greece. At first, loans became cheaper, then prices for apartments and houses literally collapsed.

It seemed that this process is temporary,  and prices will start to grow again. But optimistic forecasts turned out to be not only premature, but, as further developments showed, they were erroneous. The cost of housing has consistently declined.

Currently, housing prices not only in the capital of Greece, but in other prestigious places are so low that in some cases the purchase price is many times below its official worth. This data is also confirmed by the very eloquent statistics recently shared by the Greek Ministry of Finance.

As the most vivid example, lets take the capital of the country – Athens. In the first quarter of this year in some areas of Athens, apartments were sold at a price of 100 euros per square meter, while the average price was 1250 euros per square meter. In most cases, the real price of the transaction was five to six times lower than the fair market value.

In other words, in the modern Greek real estate market, apartments are being sold for a pittance. And the end of this process is not yet visible. Well, optimists continue to console themselves that the real estate market can not decline endlessly, that it has a limit.

Moreover, experts of the local housing market give a few very eloquent examples. An apartment in the suburb of Peristeri in a 1967 house was sold at a price of 321 euros per square meter, although the standard price for this area is 1050 euros per square meter.

An apartment with an area of ​​81 square meters in Vouliagmeni was sold in March this year at 988 euros per square instead of 3500 euros as should be standard. Similarly, a 116 meter apartment in 1989 building, in the Zografuu district was sold for 35 thousand euros, while its market price is 145 thousand euros. A 59-meter apartment in Maroussi went for 25 thousand instead of the 97 thousand euros it is worth.

This is occurring because there are currently not enough buyers in the Greek market. Even foreign buyers were not as active as expected in early 2017. The Greeks are selling their homes at bargain prices. At the same time, many transactions are in cash, so the cases of underpricing are more frequently recorded.

Two months ago the Greek Central Bank predicted that prices on houses and apartments in the country will stop declining, and in Athens they will even go up. But, as we see, this was an exaggeration – the real estate market in Greece is awaiting or already experiencing hard times.

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