The Worst May Be Over for the Greek Property Market

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The Worst May Be Over for the Greek Property Market

August 01, 2017

 Are you planning to sell your property in Greece fast? Is the worst over for the property market in Greece? Alexis Tsipras the Greek prime minister, certainly thinks so. Tsipras is already the longest serving Greek Prime Minister since the crisis began about eight years ago.

He said in a wide ranging interview with The Guardian, “The worst is clearly behind us. We can now say with certainty that the economy is on the up … Slowly, slowly, what nobody believed could happen, will happen. We will extract the country from the crisis … and in the end that will be judged.”

There certainly seems to be some improvement. In July, the International Monetary Fund, who are the biggest lenders to Greece, having given loans worth several billions of Euros agreed “in principle” to participate in a new €86bn rescue programme.

The approval for this latest bailout program depends on the 19-member euro bloc. Tsipras on his part will have to pass a range of fiscal measures to cut government expenditure, expand the austerity measures. He certainly doesn’t like enforcing the unpopular austerity measures, but has no choice in the matter.   

Tsipras says, “All this time we have been in continual negotiation and continual quest for compromise between our programme and the memorandum [of bailout conditions. The big breakthrough will come in August 2018, when, after eight years, we’ll emerge from the programme and international oversight. In the negative climate that prevails today, it is something the average Greek still doesn’t quite believe.”

What has been ruled out, however, is the idea of Grexit. Grexit is not likely to happen, not now, not in the future. Greece will NOT leave the European Union. This should clear the doubts of those who are looking to buy property in Greece online.

Prime Minister Tsipras reiterates that Greece will always be a part of the European Union. He says, “Leave Europe and go where … to another galaxy. Greece is an integral part of Europe. Without it, what would Europe look like? It would lose an important part of its history and its heritage.”

Still, Greece has been a laggard in the property market and this is not likely to change any time soon. Property prices in Greece have reduced by 1.8% over the last 12 months. This is the biggest decline in the European Union.

The decline in property prices is even more acute when you consider the stats from November 2008 to July 2017 – home prices have fallen by 42 percent in this period.

 The fall in home prices was the highest in Athens, where it amounted to 44.1 percent. The drop in the home prices in Thessaloniki, which is the second biggest city in Greece, amounted to 46.3 percent, according the data that has been made available by the Bank of Greece.

However, there is no question that things are improving and the property prices have bottomed out. Things should only get better from this point.