Residential property prices in Greece continue to fall, with the Greek economy enduring one of its worst crises in its history – according to the GlobalPropertyGuide.
The average price of apartments in Greece fell by 4,5% y-o-y to Q2 2011, according to the Bank of Greece. Over the same period, the price of old apartments (5 years or older) fell 5,5%, while prices of newer apartments fell 3%.
The bigger the city, the higher the price falls:
- In Athens, average house prices fell 6,71% y-o-y to end-Q2 2011
- In Thessaloniki (the second largest city) prices fell 4,7% over the same period
- In “all other cities”, house prices dropped 3,5% y-o-y in Q2 2011
- In “all other areas”, prices fell 1% over the same period
Residential real estate transactions fell in number, volume, and value. In the second quarter of 2011, residential real estate transactions were down 39,1% from a year earlier.
Tax increases, spending cuts, privatization and other crucial economic reforms are part of the conditions of the 110 000 000 000 euros EU-IMF bailout loan approved in May 2010. Other reforms include strengthening laws against rampant tax evasion, liberalizing the labour market and selling state assets. The sale of 6 000 Greek islands, reported by The Guardian (and alas, quoted by this site) was not part of the privatization program.
In September 2011, the government unveiled new austerity measures to affirm its commitment to meet its budget targets and to secure the release of a €8 billion aid tranche in October 2011. These include the following:
- Slashing pensions, especially for high-income retirees;
- Taxing low-income earners. The taxable income threshold would be reduced to 5 000 euros from 8 000 euros;
- Placing about 30 000 public workers in labor reserve;
- The government also affirms its commitment to stay in euro.
Source: http://www.globalpropertyguide.com/Europe/Greece