ECONOMY

Property transactions slow

property-transactions-slow

Property transfers were put on ice in 2020, mainly because of the pandemic. Data from the property transaction register show that interested buyers have postponed their investments as the economic outlook remains unknown, opting instead to hold on to their money until the prospects of the health crisis become clearer.

It is therefore particularly likely that, provided that the health crisis subsides, the real estate market will post even greater growth as of the second quarter of 2021 than in 2019. Demand is set to grow in Q2 especially, as is always the case before objective values are hiked.

Figures showed that transfers in Attica dropped by 35.2% last year from 2019, while state takings declined by 20%. Within the City of Athens, which normally records the highest number of transactions, the decline exceeded 40% as sales numbered just 3,171, against 5,303 in 2019.

Among the other areas of Attica that posted a decline, Kaisariani observed a 55.97% drop, Penteli 51%, Maroussi 48.32%, Nea Smyrni 47.06% and Kifissia 46%. The exceptions were Papagou-Holargos, which saw a 17.6% increase, and Dafni with a 2.53% rise.

Market experts point to a considerable drop in investments from abroad due to the pandemic, while the domestic market has chosen to wait. They do add, though, that the bulk of spending had come from abroad in the previous year, and besides the pandemic the drop is also a result of the saturation of the short-term leasing market, which had been recorded even before the health crisis.

Nevertheless, plot sales remained almost at the same level last year as in 2019, per reports by the Independent Authority for Public Revenue. The period from August to October in particular saw an increase in plot transactions, leading to a rise in state takings on an annual basis. Transfer tax revenues for plots amounted to 43.84 million euros in the first 10 months of 2020, down from €47.4 million in 2019. Takings from building transactions came to €155.57 million from €200.93 million in 2019.