Greek Real Estate Market Still on Downward Slope



real_estate

The Greek real estate market is still on a downward slope due to the lack of demand, the decline in people’s revenues and the overbearing tax burdens.

In particular, Eurostat reveals that the Greek real estate market experienced the second-biggest annual price drop among the eurozone countries and the third largest drop among EU. Eurostat compiled figures by the Bank of Greece in order to compare them with the figures of the rest of the EU.

Eurostat’s findings showed that the decrease in the prices of residential property in Greece in the October-December 2013 period reached 8.5% on an annual basis, behind Cyprus’s 9.4% and Croatia’s 14.4% slide. Many pundits estimate that within the next years, Greece’s real estate market will slide further but at a slower rate.

Another report conducted by BlackRock shows that the prices are expected to drop by 6.2 percentage points on average this year, while the decline will ease further to 2% in 2015 ahead of an expected stabilization in 2016.

However, if the Greek economy recovers at a faster rate, then the housing market will be able to recover sooner too. The total decline in house prices at the end of 2013 compared with the peak observed during the second quarter of 2008 is estimated at 33.8 percent.