Greece's real estate market recovery seen slowing
Greece's real estate market is seen continuing to recover in the next few years but at a slower pace than that seen recently, says Eri Mitsostergiou, European Research Director at Savills.
Speaking to greekguru.net, Mitsostergiou says that improving conditions will support a recovery but added that the economy is seen expanding at a slow pace in the near term due to structural rigidities and ongoing tough fiscal targets Greece is required to meet.
"So house price growth can be positive but more modest over the next few years," she says. "Political stability and external conditions can have an impact on the course to recovery."
Residential property prices in Greece have been advancing in the last 18 months after having plummeted more than 40 percent during the country's ten year downturn. In the first quarter of the year, market prices advanced 4 percent while in Athens prices jumped nearly six percent. Brokers say that in some parts of central Athens, near the Acropolis, prices have jumped by as much as 30 percent in the last two years on the back of strong buying interest for homes that can be leased on platforms, such as Airbnb.
"Low development activity since the beginning of the crisis means that there is lack of quality stock available. Any newly developed or renovated properties can command as a result higher prices," she adds.
Apart from a spike in demand for residential property, investors have also been focusing on commercial assets such as hotels throughout the country and office and retail space mostly in the Greek capital. As long as the mood among investors continues to improve, demand is likely to pick up for well located office and logistics assets.
"Niche segments of the residential sector eg. mid segment of the residential market, student accommodation / “micro” living and branded residences could also attract investor interest. Development/refurbishment opportunities may also be a way to gain exposure in a market that hasn’t seen any new supply of building stock and shortages across sectors will emerge," she adds.
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