Coverage of the Greek Housing Market

To revive the ailing housing market, the Greek government has recently offered residence to non-EU investors purchasing worth over €250,000. The residence plan, which is similar to measures adopted by Hungary, Spain and Portugal, is valid for five years and open to renewal.

Mr. Kioleoglou Konstantino who is a Tegova Certified Expert Property Valuer and holds a masters degree in civil engineering from the National Technical University of Athens and who is also the chief property strategist at Taylor Scott International says…"Property demand in Greece remains depressed. For the First 2 quarters of 2013 residential real estate transactions in Greece fell in number, volume, and value. Just in the first quarter of 2013, the total number of residential real estate transactions plummeted by 24.5% to 4,976 from the same period last year. "

According to the Bank of Greece and independently verified by Taylor Scott International in May 2013, the total amount of outstanding housing loans in Greece dropped 4.9% to €72.56 billion from the same period last year.

Greece continues to endure double-digit year-on-year house price declines, with the Greek economy facing its sixth year of recession. It is expected to contract by another 4.2% during 2013.

In the Greek capital of Athens, the average price of apartments plunged by 12.6% (-12.6% inflation-adjusted) during the year to end-Q1 2013, according to the Bank of Greece. During the latest quarter, i.e., quarter-on-quarter during Q1 2013, house prices in Athens fell by 2.6% (-0.6% inflation-adjusted).

Almost all cities experienced house price falls:

· In Thessaloniki, the second largest city, house prices dropped 8.3% (-8.2% inflation-adjusted) y-o-y in Q1 2013. House prices fell 1.2% during the latest quarter (which means that they rose by 0.9% in inflation-adjusted terms).

· In “all other cities”, residential property prices plunged 11% (-11% inflation-adjusted) during the year to Q1 2013. Quarter-on-quarter, house prices dropped 2.9% (-0.9% inflation-adjusted).

· In “all other areas”, house prices fell by 10.9% (-10.9% inflation-adjusted) y-o-y in Q1 2013. In a quarterly basis, house prices dropped 0.7% (+1.4% inflation-adjusted) in Q1 2013.

Taylor Scott International calculates that residential property prices in Athens have been falling since 2008, mainly due to the adverse effects of the global economic and financial meltdown.

· In 2008, residential property prices fell by 0.77% (-3.57% inflation-adjusted)

· In 2009, house prices fell by 4.21% (-6.04% inflation-adjusted)

· In 2010, house prices dropped 5.83% (-10.4% inflation-adjusted)

· In 2011, residential property prices plunged 8% (-10.49% inflation-adjusted)

· In 2012, house prices plummeted by 13.1% (-14.08% inflation-adjusted)