Owners in Greece have reduced even by half the rental prices of their properties, in order to attract tenants. During the last three years an overall fall in rental prices of about 40% has been reported.
According to real estate agencies, during the past 12 months, the fall has reached on average 15%, as the reduction in incomes and heavy taxation has forced more and more Greek households to seek for a house with a lower rent. Moreover, there are cases where the reduction in rental prices is reaching or even exceeds 50%. The biggest fall has been recorded in large properties located in expensive areas which don’t easily attract tenants.
“The decline in real estate market started from selling prices and then, from 2011 onwards, when the impact of the crisis started being distinct, it expanded to rental prices,” says Lefteris Potamianos , general secretary of the Hellenic Association of Realtors. He believes that the decline in rents will continue over the next months, given that the drop in household incomes and unemployment remain high.
On the other hand, according to an analysis by Alpha Bank, during the period 2000-2011, the rents of houses increased by almost 43%. At the same time, from 2000 to 2008, the prices of houses have increased by almost 91%.