If measures are not imposed soon in order to raise the demand of real estates, the market will face a crisis. In other words, the demand will fall while the number of the available properties will continue to rise.
The house market faces problems since there are many unsold property and high rates of unemployment. The analysts estimate that the price of the houses, especially those which are second-hand will drop further. The house markets in smaller cities or summer destinations which depend on the Greek tourists, will also be influenced. The price of country houses have already dropped more than 30% in comparison with 2008, and the situation will get worse.
In the commercial shop market the situation remains the same. The drop of the turnover in combination with the absence of liquidity has a negative effect on the small markets of the province and closing of shops is a common phenomenon. According to analysts the rentals will drop further. In fact, the purchase of shops has already been extremely limited.
The situation in the business office market is similar. The decrease of investments and the balance between the companies which are established and the ones which close, also cause the drop in rentals. It is estimated that in comparison with 2008, the drop of rentals will be of 40%. The recent legal regulations concerning the reduction of rates for real estates rented out by public and local authorities will cause a further drop of businesses rentals.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
