Greece Real Estate Scenario

The year 2009 was not a good one for real estate projects

. As the worlds economy stagnated so everyone wanted to sell but there was no one who was willing to buy. Developers were optimistic about their prices but the buyers were unwilling to accept these unrealistic prices especially at a time when market was collapsing. Most of them wanted to buy at crisis prices which are sometimes almost equal to the cost price. As sale of property is less, so the rent of properties has increased tremendously. Developers that will not adapt to the market by lowering prices will suffer the most in this crisis situation.

In Greece, though the prices were higher as the market was declining but still the investors, developers were interested in purchase focused on northern and southern districts having traffic accessibility of most Greek cities along with airports. Northern districts consist of residential complexes while the southern district has industrial plants. In other parts of Greece, situation was far better as far as prices are concerned means they were very cheap.

Though Greece experienced a slowdown in real estate market but EU membership has created an immense demand for quality properties in both residential and industrial sectors which has lead to change in its infrastructure and standard of living. Greece is attracting investment from overseas as the population is becoming better qualified with better and higher expectations. Key attention is being given to capital city of Bucharest and other neighboring cities like Iraklion, Chania, Corfu or Kasteli as direct investment from overseas buyers and relocating multinational companies provide opportunities for real estate boom in this fully networked and connected city with public transport infrastructure that includes buses and trains. Many city locations including the capital city is not able to meet accommodation requirements of people which give a motivation to investors to invest in such cities. Property investors are constantly on a look to identify areas of high demand and short supply so as to have strong rental yields capital. Investors are quite optimistic about purchasing Greek property at low prices which will bring strong returns in the future. As tourism industry in Greece is growing, real estate will also reach its height in a matter of time.

The Greek government has made a crucial step to improve its real estate market by giving permission to build new airport for the city of Brasov. This would further attract investors and developers to build residential and commercial sectors near the city.

The overall outlook of Greek estate market isnt great but in 2-3 years, the revival of real estate segment is likely to occur with decrease in prices by twenty percent in both residential and commercial properties. Country is all set to build its structural reforms and economy so that to attract multinational companies and investors to invest in real estate so that the economy can improve further and can cover up the loss caused to real estate sector during the crisis or recession period. Real estate is expected to continue its growth with the growing economy but still has a long way ahead to reach Western European prices.

by: Antonis Saridakis

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