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CEI - Greek Market Report - May 2013

CEI - Greek Market Report - May 2013

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The situation in Greek real estate market still remains critical during the fourth year of recession. It is interesting that its extension is affecting the most countries of the southern Europe with tendencies of further expansion.

It is no coincidence that the recession in the Eurozone has been ranged in -0.6 % and certainly, the property values on average are declining in Europe.

In our country the unemployment rate is expected to approach the 30%, creating particularly difficult conditions in a society which is bearing disproportionately harsh economic measures, with obvious impasses. Most Greeks are in difficult financial position. The inflation is estimated to be zero and the recession is expected to reach the -4.6%, in each case significantly reduced compared with 2011 and 2012.

The presence of primary surplus in the first trimester of this year, in parallel with the significantly enhanced stock market’s route creates a moderate optimism.

Furthermore, the proceeds in recapitalization of Greek banks are progressing and this development is a progress that will create liquidity. Moreover, its perennial lack has fundamentally affected the real estate market.

Already, some major investors in all financial fields are proving their factual interest by preferring Greece. Even if the improper handling from Cyprus and the European Union are passing contradictory messages, slowly but steady, a part of the deposits returns to Greek banks.

The selling prices have reached alluring levels as they are lower than the construction cost of the property. All the above, is expected to intrigue the interest of the remaining Greek investors but also of foreign ones in Greek real estate market. Besides, the tourist arrivals according to the bookings so far is expected to increase significantly.



The average decrease in prices of residential real estate throughout the country amounts to 30% from 2008. It is noticed a marginal stabilization of market’s conditions even if the demand remains severely low.

In 2012, there has been a decline of 30% in property investments and around 81% from 2007. The number of transfers through the notaries from 100.000 and more has fallen below 10.000 in 2012.

The factors of the current difficult situation are:

  1. Inadequate founding

  2. Low demand

  3. Economic situation of the country – recession

  4. The unbearably high taxation, especially in properties

  5. High assignation’s cost


The building permissions have declined around 37% at 2012 in comparison to 2011.

The interest rates of the housing loans with duration over five years are configured at 3.20%.

The stock of residences is calculated from 200.000 to 220.000 with the possibility to increase if the banks decide to divest their properties.

It is remarkable that in 2012, 20.000 new residences have been built, a number which is lower around 80% than 2007.

Undoubtedly, the crisis is provoking Greeks to deny their favorite investment, “the property”. So, at present, the aspiring buyers are waiting for the right moment while the foreign buyers acting carefully and cautiously.

This year, the investing opportunities in real estate market are expected to be multiplied while at the same time, it is estimated that the rationalization’s cycle of rent prices will be completed.

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Tinos Port, Tinos - Cyclades, Greece
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Σύνδεσμος Ελλήνων Κτηματομεσιτών Confédération Européenne de l'Immobilier National Association of Realtors International Consortium of Real Estate Associations L'Union des Syndicats de l'Immobilier

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