Property owners up against wall

Property owners up against wall

Apartment owners in central Athens and other parts of the Greek capital are ready to make the most of the increase in demand – mainly from foreign visitors – given that most people seeking a new home want to rent rather than buy.

Property market professionals say that these developments have prevented rental rates from declining in the last few months, adding that there are even signs of an increase in some high-interest areas. It is worth remembering that home rental rates declined by 40 percent from 2011 to late 2016.

At the same time the taxes imposed on property ownership soared from 500 million euros in 2010 to 4 billion last year. If one adds the cost of servicing a mortgage loan it becomes clear why residential property owners find themselves up against the wall.

Yiannis Xylas, head of Geoaxis Property & Valuation Services, says that in some cases the stabilization of average rental rates has led owners to seek higher rents from tenants with the aim of reaching up to amounts equal to that of their monthly mortgage installment. Some appear to have achieved that. Others are happy to to wait with their assets empty until they find a tenant willing to pay the rental rate they want.

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