Property experts anticipate further growth in prices
Nearly half (44%) of more than 200 Greek property market executives who participated in Cerved Property Services’ annual market survey expect further growth in property prices, which is set to happen for both new-build and old homes.
There are very few realty professionals who expect a drop in prices in the immediate future, amounting to only 9% who expect a decrease in prices for old homes and correspondingly 12% for newly built homes.
The main reason for the new price increases is the imbalance between supply and demand that prevails in all large urban centers in Greece.
The imbalance between supply and demand for housing in Attica, Thessaloniki and all the tourism destinations in the country persists, while in the rest of the regions the situation appears more balanced. This is one of the key findings of Cerved Property Services’ (CPS) new annual market survey, based on the opinions of over 200 property market experts. Also, the prospects of older residences, as well as commercial properties located in secondary areas and of low quality standards, appear limited.
According to the survey, the factors that work to strengthen the demand in the housing market are the interest from abroad, either for residence permits or for country houses, as well as the increased demand of wealthy Greek households for owner-occupied housing, but also the fact that now the residence has also acquired an investment character. On the contrary, inflation and high interest rates have a discouraging effect, combined of course with high prices.
However, these rates will barely decrease in the immediate future: According to what the experts report, 44% expect a further increase for both newly built and old homes, while 53% of respondents foresee the maintenance of today’s already high home sale prices.
Office space
It is also expected that the course of office space rates will remain steadily upward.
According to the same survey, demand for modern office space, both for purchase and lease, is predicted to increase. Some 52% of respondents estimate that demand for buying offices will increase and 58% that the rental interest for modern office spaces will be strengthened.
On the contrary, for older offices, only 13% of experts expect an increase in buyer interest and even fewer (9%) predict an increase in rental demand, which may also act as a warning for the viability of these properties.
Correspondingly, the prospects of stores located in secondary markets appear particularly low, which is not the case with stores in the most popular shopping areas.
Based on the relevant analysis, 39% of experts expect an increase in buying interest and 47% a strengthening of the demand for renting such commercial property in the most popular spots.
