Property market becomes stable in Athens

After nearly a decade, the cycle of decline in the property market appears to be closing. In the year’s first quarter prices in selected areas of the Greek capital may have shown a decline but this was at a rate below 1 percent on an annual basis, which has been the smallest yearly drop since the outbreak of the financial crisis.

In five representative areas of Attica (Holargos, Maroussi, Palaio Faliro, Ambelokipi and Peristeri), older apartments (more than 15 years old) posted a decline rate of just 0.77 percent from the first quarter of 2016, while newer apartments saw their prices fall 0.83 percent on average.

Market experts say the latest developments in the negotiations between the government and the country’s creditors with the sealing of a provisional agreement are expected to consolidate the stabilization trend in the homes market at least up to the end of 2017.

Any potential buyers who have kept a wait-and-see stance to date, expecting a further decline in property rates, are now likely to start making decisions, bolstering transaction volume and contributing toward the stabilization of prices, says the head of Geoaxis chartered surveyors, Yiannis Xylas.

Still, experts are warning that unless there is sound handling of the issue of property auctions, it is possible that the market will be inundated with a multitude of new properties for sale, upsetting the balance.