First warning sign on property market
The first warning signal for the property market came on Friday from the Bank of Greece, in the midst of the coronavirus epidemic. BoG analysts say that the uncertainty regarding the broader consequences on the domestic and global economy are creating new conditions, with possibly significant effects on the real estate market, at least in the short term.
"Given the high dependence of the property market on tourism and other sectors of the economy, it is expected that property prices will remain stagnant in the first few months of 2020 or in some cases suffer pressure, the extent of which will mainly depend on how long the current extraordinary conditions last. Domestic and foreign demand will rebound as fast as normality is restored."
In the last few years the local realty market has relied heavily on foreign buyers as most demand has come from abroad. In 2019 the net...