ECONOMY

Luxury summer home demand nosedives

The luxury summer home market has been suffering this season, when most such sales usually take place. Changes in property taxation, with the imposition of the single property tax for homes valued at over 400,000 euros, has dramatically reduced buying interest in properties on the islands, once a popular choice. There are reports of a drop in prices of as much as 45 percent in certain cases of luxury homes valued at or even exceeding 1 million euros. Discounts are the order of the day, as is also the case in the market for main residences. Any possibility of a rebound in interest and prices is closely connected to an improvement in the economic climate, which could rekindle demand by Greeks and reduce the hesitation of foreign buyers. Demand in destinations such as Myconos, Santorini, Paros and Naxos has nosedived this year. Yiannis Revythis, head of the Athens-Attica Estate Agents Association, says demand on most islands has declined by about 15 to 20 percent compared to last year. Sale prices have fallen by 20 percent on average.