BUSINESS

Property market hangs on economy

NIKOS ROUSSANOGLOU

TAGS: Property

The course of both the domestic and global economies will determine whether the Greek real estate market can build on its recent momentum and emerge from its decade-long crisis, according to sector professionals.

“The property market is in its best state in nine years, and its recovery could have been far greater if the financial conditions were better,” Yiannis Perrotis, chief executive officer at property service company CBRE Atria, said at Prodexpo’s 7th Executive Leaders’ Meeting.

Perrotis added that the crucial factors will be maintaining the sense of security and stability in Greece, as well as any changes to the value-added tax on properties from the current level of 24 percent on secondary residences (primary residences are exempt).

The course of the market will also depend on the new “objective values” (adjusted property rates used for tax purposes) and the amount of bank lending, which could boost transactions if lenders start financing buyers again – albeit on a more rational basis than in the past.

Perrotis expects a major increase in prices for properties in Athens that are in high demand by foreigners, as well as in commercial properties at popular tourism destinations.

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