According to a survey published at the Global Housing Watch website, prices of Greek houses in the fourth quarter of 2013, have dropped by 7%, which is the second highest rate after India. The survey was based on IMF and OECD data.
India comes first in the drop of house prices with 9.1%, followed by Greece with 7.02%, Italy with 6.54%, Cyprus with 6.48% and Croatia with 6.35%.
The survey indicates that in Greece the house price-to-rent cost ratio differs by about 16.3% from the historical mean average.
Among the 51 countries included in the Global Housing Watch list, the biggest increase in house prices was recorded in the Philippines (10.56%), Hong Kong (10.25%), New Zealand and China (9.1%) as well as in Colombia (8.1%). The IMF stated that the recovery of the house market is a positive sign, however measures must be taken to make sure that this trend is secured. Moreover, it notes that an observatory of prices must be created, in order to avoid “real estate bubbles” phenomena in the future, that are really harmful for the real economy.