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What is the real situation of real estate in Greece under the epidemic? A report from a global autho




 
Recently, DBRS, the world's fourth largest rating agency, pointed out in its analysis report that despite the impact of the COVID epidemic, the Greek real estate market will remain resilient in 2020. 
 

 
According to the analysis and comments, the property price in Greece has risen by 9.2% during 2018-2019. In 2020, affected by travel restrictions and other measures against the coronavirus, the increase will drop to 4.6%. Although it has slowed down, the market performance is positive. 

In the first quarter of 2021, Greece continued to implement restrictive measures, but preliminary data from its central bank showed that housing prices continued to rise at a rate of 3.3%. 

The analysis believes that the Greek real estate market is highly dependent on foreign investment, leading to a sharp increase in prices in Athens and other popular tourist destinations. In contrast, investors' interest in investing in other areas of Greece is generally not high, and prices and transactions are at a low level. 

Preliminary data released by the Central Bank of Greece show that house prices in Athens and Thessaloniki have risen sharply, reaching 7.6% and 4.8% in 2020, and 5.4% and 3.7% in the first quarter of 2021. Prices in other cities have remained low. 

Construction activity, measured by the number of building permits, continues to show an upward trend, increasing by 8% in 2020 and 13.7% in the first quarter of 2021. 

However, housing prices in areas with lower investor interest are still in decline. Recent legislative interventions clearly and powerfully demonstrate the government’s support, including measures to reduce taxes on renovation costs, suspend the three-year value-added tax on new construction permits, adjust fair value, minimize bureaucracy, and improve the efficiency of public administration. Or it will improve the investment environment and accelerate the pace of sales. 

 
DBRS estimates that the overall long-term prospects of the Greek real estate market will depend on whether Greece can recover from the coronavirus epidemic and maintain a stable macroeconomic and political environment. In the long run, the overall development of the real estate market will depend on whether Greece can create jobs and promote policies that support real income growth, as well as maintaining a stable macroeconomic environment to attract more foreign investment. 

(Source from: China Greece Times Newspaper) 

 

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