The housing market is expected to move at three speeds for the new year, with the new houses in the so-called "good" areas having a comparative advantage as seen last year, as they are clearly less and have shown great resilience in through the health crisis. Overall throughout Greece, as market executives point out, the housing market is projected to have a period of price stagnation or even a slight decline in 2021, due to the fact that the maximum percentage of potential buyers has seen a squeeze in their finances, while there is a general insecurity and uncertainty about future economic developments. For 2020 and based on the official data of the Bank of Greece, house prices continued to rise (s.s. after a decade of declining course of 35% -45% cumulatively in terms of prices that began at the end of 2008 for to start the recovery from 2018 onwards), however over the months and as the pandemic progresses, at lower rates compared to last year, pre-coronavirus: Indicatively for the third quarter of 2020 - when there are latest official data - an increase of 3.2% was recorded, lower than the + 4.1% of the second quarter of this year. In this context, as stated by Mr. Babis Charalambopoulos, former president of the Hellenic Institute of Valuation, it is estimated that the market will continue to move at three speeds, depending on the category of real estate and in particular there will be:
Relative demand in good areas - neighborhoods for new apartments where at the end of 2019 and the beginning of 2020 mobility was observed and real estate transfers took place.
Absence of demand in the vast majority (of the old stock) of the country's real estate, but with a slight decline in prices since, due to the previous crisis, prices were already low.
Stagnation in real estate of tourist interest and holiday homes
At the same time, as the market trend remains the reduction of sales, the restriction on the demand for large apartments, while small and older properties are in demand due to the price advantage. Also, the change in rent continues to a point where one can not easily find property in some areas of Attica.
"In the parameters that should still be taken into account for the course of the market and the new year are three more key elements. First of all, the fact that household finances, due to the crisis, are at low levels and can not easily support the purchase of a new home, and also the fact that banks give mortgage loans with the dropper. "Apart from that, the Greeks, having been burned by the red loans, as much as they can, avoid borrowing from banks and think twice before asking for a loan", says Mr. Charalambopoulos.
Another factor that must be taken into account, now in the midst of Covid-19 is the need to have even a small space in the house for those who work with telework in consultation with the company. "This means that there will be a mobility in the house (rentals and transfers) in order to meet these new needs. The renovation of old houses and apartments and their energy upgrade, through the "I save" program, contributes to employment and the supply of old but better quality real estate, at reasonable prices ".
Foreigners, cottages and Airbnb
In relation to the holiday home or the "Airbnb" type houses that moved the market during the previous (financial) crisis, now there is a serious shift from short-term to long-term leases and remains to be seen from the second half of 2021 and after which the market will balance after even the gradual recovery of air and road travel.
"Besides, the holiday home is moving at low to zero rates in terms of demand from both foreigners and Greeks and this is a result of the pandemic. There was little demand from some Greeks to stay out of cities during the restrictive measures. However, in 2018 and 2019 there was a relative increase, while now the specific category of real estate is in a state of waiting.
"In the midst of a pandemic, the inaction in the real estate market with the" golden visa "program is also remarkable, where" Chinese, Russians and others acquire properties over 250,000 euros and obtain a residence permit ".
Finally, the launch of Elliniko's megaproject, which spans many years, will signal a series of positive developments. Therefore we will have a strong guide that will contribute significantly to the development of the region and will be a magnet for other investments.
