Greek realty market is the only one in the EU to contract

Greek realty market is the only one in the EU to contract

The Greek property market was the only one in the European Union to post a year-on-year decline over the last quarter of 2016, according to figures released on Monday by Eurostat using data from the Bank of Greece.

Central bank statistics show that property rates in Greece shrank 0.6 percent in Q4 last year, although the drop was not as steep as in previous quarters. The decline made the local market the odd one out among its EU peers.

Property professionals argue that the local market is entering a phase of stabilization, although this may take some time to become apparent in a number of areas given the upcoming wave of new austerity measures that are certain to put fresh pressure on demand and worsen the already negative climate in the market.

It is now agreed that the Greek market is unlikely to return to a course of growth within 2017. With the large drop in disposable household incomes, the heavy tax load and the fact that unemployment remains stuck at a very high level, it is impossible for demand to recover – although the understanding Athens has reached with its creditors will likely help the market and the economy to avert the worst, experts note.

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