Greek real estate prices are set to decline further in 2012, with the most conservative estimates putting the drop between 5 and 10%, as daily Kathimerini reports.
The impact is expected to be greater regarding older properties, which are in increasing supply. It is worth noting that, according to a recent Eurobank EFG report, Greek property prices are down 14% from their peak in the first quarter of 2008.
Prices are now at 2005 levels, the report said. According to a recent survey conducted by Knight Frank real estate agents, the price drop in the Greek property market over the past three years matches that of Ireland in the past year.
Meanwhile, the decline in prices of newly built properties (up to five years old) since the onset of the crisis is just 10.4%, compared to 15.8% for older properties. Scant demand, which is often the result of reluctance rather than financial weakness, inspires little optimism for the future of the local property market, given that bank loans are also becoming less accessible.
Rather than approving new housing loans, banks are concentrating their efforts on collecting debts from borrowers.