The Greek property market is expected to enter a new cycle of decline as a result of increased recessionary pressure on the Greek economy, a report by GLP Values, a chartered surveyor firm, argues, adding that in the next two to three years prices are likely to drop by as much as 18 percent from their current levels.
If this forecast proves correct, “the total decline in the housing market will reach 60 percent,” Tasos Tsombanidis from GLP Values told Kathimerini.
Unless there are some positive developments for the market in that period, this rather bleak outlook may come to pass, though it appears unlikely given expectations from the possible realization of housing development projects. These mainly concern public properties that are slated to be conceded to private investors.
After the stagnation in transactions throughout the first half of the year and the introduction of the new austerity measures, most of which are seen as as being of a recessionary character, “an average decline of prices between 12 and 18 percent is considered likely, depending on the category and the various characteristics of each property,” argue the authors of the report.