(ANSAmed) - ATHENS, SEPTEMBER 16 - The economic crisis and
extremely sluggish demand in the Greek real estate market have
resulted in house prices nosediving by more than 50% since 2008,
daily Kathimerini reports quoting experts. While there are
plenty of great bargains to be found all around the Greek
capital, funding real estate purchases is where the real problem
lies as banks have all but given up on issuing new mortgages,
even in cases when a house is clearly a bargain. In most cases,
meanwhile, asking prices are below the rate used by tax
authorities, known as the "objective value," meaning that buyers
would be taxed on the estimated rather than the actual value of
the purchase. Lefteris Potamianos, vice president of the
Athens-Attica Estate Agents' Association, says that "interest is
minimal, while there may even be some more margin for
negotiation," even in houses offered at a discount of more than
50% compared with 2008. A typical example concerns a
70-square-meter first-floor apartment currently on sale for just
38,000 euros when its objective value is set at 50,000 euros.
The flat is on Asclepiou Street, at the foot of Lycabettus Hill in central Athens, and was built in 1970. A similar flat on the market in 2008 was going for 80,000 euros, meaning a 52.5% drop in the current asking price. In upscale Kolonaki in central Athens, another first-floor apartment built in 1975 and with an area of 114 sq.m. is currently on sale for 250,000 euros. Before the crisis such a property would have cost some 400,000 euros, i.e. 37.5% more than it does today. In Zografou, east of the city center, a two-story maisonette on the second and third floors, covering 138 sq.m. in total, represents something of a bargain. Built in 1996, it includes parking and storage spaces, and costs 150,000 euros, while a few years ago it would have cost 250,000 euros - a 40% decline. A similar maisonette, of 170 sq.m. and with access to a 100-sq.m. terrace, is on sale in Neos Cosmos for 90,000 euros, against the 190,000 that it would have cost in 2008, i.e. a drop of 52.6%. Finally, in Neo Psychico, north of the center, a third-floor flat complete with parking and storage spaces, is on sale for 220,000. A few years ago such a property would have cost around 370,000, or 40.5% more.
(ANSAmed).
The flat is on Asclepiou Street, at the foot of Lycabettus Hill in central Athens, and was built in 1970. A similar flat on the market in 2008 was going for 80,000 euros, meaning a 52.5% drop in the current asking price. In upscale Kolonaki in central Athens, another first-floor apartment built in 1975 and with an area of 114 sq.m. is currently on sale for 250,000 euros. Before the crisis such a property would have cost some 400,000 euros, i.e. 37.5% more than it does today. In Zografou, east of the city center, a two-story maisonette on the second and third floors, covering 138 sq.m. in total, represents something of a bargain. Built in 1996, it includes parking and storage spaces, and costs 150,000 euros, while a few years ago it would have cost 250,000 euros - a 40% decline. A similar maisonette, of 170 sq.m. and with access to a 100-sq.m. terrace, is on sale in Neos Cosmos for 90,000 euros, against the 190,000 that it would have cost in 2008, i.e. a drop of 52.6%. Finally, in Neo Psychico, north of the center, a third-floor flat complete with parking and storage spaces, is on sale for 220,000. A few years ago such a property would have cost around 370,000, or 40.5% more.
(ANSAmed).
