Home prices retreat 0.6% in third quarter - central bank

Apartment prices down 0.6% in Q3

Greece's apartment prices declined by 0.6% in the third quarter of the year, the country's central bank said Thursday.

Data from the Bank of Greece showed price drops as slowing following a 1.7% retreat in the first quarter of the year and a 1.2% drop in the second quarter.

Greece's property prices gave up more than 40% in the country's eight year economic with demand in most of the market remaining depressed amidst tight bank lending and low disposable income levels. However, rising demand in pockets of the market, such as luxury holiday homes, is helping provide some optimism to the sector. Interest for homes in Greece has been rising among foreign buyers looking for cheap real estate and high yields - a difficult combination to locate in other European markets where growth is robust.

Price drops for apartments older than five years old were marginally steeper, the data showed. Older homes recorded a 0.5% price drop in the third quarter of the year versus a 0.7% drop for newer apartments.