February 26, 2024

Valley Post

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Real estate surplus Liberal.gr

Real estate surplus  Liberal.gr

We might dare to say that real estate prices are on the verge of a bubble. The difference compared to the past is that this time there is no risk of the banking system blowing up, because banks have not provided real estate loans for the past few years. In classified ads, you will see the same properties offered for years, but every year at a higher price. A shallow market that resembles a mousetrap for the unsuspecting who see nothing but cheese.

Yes, there were violations in the southern suburb. Action was taken and many people sold 30 and 50 year old properties so as to secure their descendants. With the Russians disappearing from the market, things started to get complicated. At the same time, there is the possibility of many new homes appearing in the Hellinikon project, at prices that are already attractive compared to those that have been offered for a long time by many “sabaki” in the area…

In the center, Airbnb has raised prices for older apartments to unimaginable levels, creating conditions for direct competition with areas like Kifisia or Glyfada!

The absurdity began to spread from one end of the country to the other. Even in remote villages, there is a question as to whether there will be winter residents in a few years.

And all this happened very quickly. Not as a result of increased demand, but rather because of limited supply. Here we must not forget the absolute distortion, and the fact that there are always thousands of auctions waiting for us that have not yet happened. But how can prices be maintained, when it is possible to find a property at auctions for a price clearly lower than that which some sellers are “offering”? How can we be sure that Greece will continue to attract foreign investors, when the real estate crisis has already begun in other European countries and is starting to create real opportunities?

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Personally I would be very careful. Within a short period, the price offered was revised from 1,000-1,500 euros to 4,000-6,000 euros per square meter. While one can say a lot about the high cost of building new homes due to the war in Ukraine, one cannot justify the fact that these prices compete with 30 and 50 year old homes! There is an error somewhere. Mistakes in the markets are corrected, usually in a violent manner…

Thanassis Mavridis

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