Uncertainty puts chill on luxury home market

Homes, Greece

The uncertainty hanging over the Greek economy due to a deadlock between the country and lenders overs bailout funding has put a chill on buying interest in luxury homes from foreign investors, according to a leading Greek agent.

Yiannis Ploumis, managing director of the Ploumis-Sotiropoulos estate agency told daily Kathimerini that buying interest from abroad appears to have subsided since the start of 2017, especially when compared to the same period last year due to the uncertainty.

“However,” Ploumis adds, “it is positive that the current season is traditionally an off-peak one for the holiday home market. Were the present uncertainty related to the completion of the second bailout review, and financial and political stability in general, to be recorded in the summer months, it is obvious that we would be talking about a serious loss. A similar thing happened in 2015, and this was directly reflected in demand for luxury homes in Greece.”

Price drops of more than 40% in Greek real estate since the crisis erupted in late 2009 has helped draw buying interest from foreign investors. This has even helped property prices in some parts the country nudge higher but economic sentiment in the country remains fragile.

Earlier Monday, the European Commission reiterated that it expects the Greek economy to rebound this year and grow by 2.7% but stressed that Greece must wind up the current review of its bailout with lenders quickly.