Detail News & Updates

Testing Times Ahead for Greece Property Market 28-Apr-2017


 Should you sell your property in Greece fast keeping in mind the grim economic situation in the country?

Or should you do the unthinkable and buy property in Greece online, hope for an improvement in the economy in the near future? In that case you will make a lot of money as properties in Greece are really cheap right now.

2017 brings its share of good news and bad news for Greece. The good news is that there is actually some demand for properties in Greece from overseas investors. Many rich, high net worth international property hunters from emerging nations such as China and Russia, and from a number of Middle Eastern countries have smelt a real opportunity to make money in Greece.

They realise that the property market here has bottomed out and the only way is up. So investing in a Greek beachside villa when they are available for unbelievably low prices would be a smart decision indeed.

Consider the fact that some of the biggest beachside mansions in Greek islands such as Mykonos, which were worth $25 million in 2007, are now selling for under $5 million. That is a great deal, and the most sophisticated buyers look for opportunities such as that.

 Prime Minister Alexis Tspiras seems to be in a mood to compromise and he agreed to a number of concessions to his European creditors. This has helped to ease up some of the restrictions on Greece. His gesture has been well appreciated by the international business community, but there is still a lot of concern over this in Greece.

Syriza MEP Stelios Kouloglou said, “In the circumstances it was the best the government could get, but in essence it only prolongs the crisis, it doesn’t solve it. Personally I neither trust the IMF nor [German finance minister Wolfgang] Schäuble. The IMF is still waiting for Trump to clarify his policy on Europe, and Germany is in the midst of an election campaign.”

There is a serious worry here that Greece is falling behind and people are suffering. Aliki Mouriki, a leading Greek sociologist says, “The 37% of Greeks at risk of poverty and social exclusion really cannot make ends meet. They no longer have the means to meet basic needs, with consumption of milk and bread right down and payment of electricity bills at an all-time low.”

So what is the way forward for the Greek economy? Can one really have any hopes at all that things will get better? What about Grexit? Is Greece going to leave the European Union in case they find that they can no longer meet their obligations?

Giorgos Kyrtsos, a Greek MEP and a member of the main opposition party here says, “The EU is buying time, governments are buying time, the Greek political system is buying time. There are two Grexit scenarios. One made in Greece, the result of the inability to restart the economy. And one made in the eurozone because of political developments in France or Italy. In my view, the big danger is the permanent political and economic crisis in Italy. You can’t have Greece trapped in the eurozone if Italy leaves.”

Clearly, we are headed for tense times ahead.