If you’re looking to sell property in Greece, you are understandably anxious about the situation in the country. Things in Greece have gone from bad to worse recently, and the turn of events of last night might as well place the country on the verge of collapse. Most people who have homes to sell in Greece were probably awaiting the results of the referendum called by Prime Minister Alexis Tsipras on Sunday.
The result of the national referendum is in. The people of Greece have just voted overwhelmingly “No”. This makes “Grexit” all too real a scenario and Greece is today very much on the verge of leaving the Eurozone. The government of Greece is literally out of cash as banks have no more than 450 million Euros left – which means, just 40 Euros per person!
The people of Greeks have made all the wrong choices and have themselves to blame for the mess they have landed themselves into. So what does this mean for you if you have properties to sell in Greece?
Clearly, property prices in Greece are now headed for a sudden devaluation. There is already serious talk of Greece giving up the Euro and returning to the Drachma. This is calamitous news for people who have houses to sell in Greece. The financial situation in Greece is very negative today, and one can only sympathize with the ordinary people of the country, who have been let down so badly by their politicians.
But there are some who insist that it is not all doom and gloom for those who have houses to sell in Greece. As Dimitris Manousakis, who heads the property consultancy Savills Hellas says: “The market will practically find itself at zero point, having to restart all over again. In such a scenario, it is very likely that those who still enjoy liquidity, in euros or other strong currencies, foreigners or Greeks, will try to take advantage of the considerable drop in values. As a result, I expect that prices will fall significantly, but I am not so sure about a similar decline in demand.”
But this certainly has hard consequences. The result of the referendum and the impending Grexit means there will be more Greece properties for sale in the market and the supply will be far greater than demand. As Manousakis explains, the waiting period to sell properties in Greece will grow even longer: “It will take owners forced to sell their assets several years before they attract buyers, especially if their property is not in a privileged area or has any drawbacks.”
As of now, the average waiting period to sell a property in Greece is 12 months – imagine how hard it would be to get rid of Greece houses for sale in quick time in this scenario! The residential market will be worst hit, as any drop in value will turn a vast number of homes in Greece into non-performing assets for the banks.
There is already a serious liquidity crunch in the country. Prices of properties have dropped by 38 percent since the start of the crisis which began in 2009. The decline in the cities of Athens and Thessaloniki has been even greater, amounting to 40 and 42 percent respectively. What is also quite evident is that residential prices have fallen faster than the prices of commercial properties.
Now, more people will be forced to sell properties in Greece just to survive loss of a job or lacking any real source of income. Those with large debts will be the first to put their home for sale in Greece.
As a senior real estate broker who is understandably devastated by the result of the referendum said, “People are surprised at what has happened, but I’m not surprised. I trust the promises of no one and just try to survive and live my life.” Well, what you can do in this scenario is to take charge of the situation and hire reputed UK estate agents for overseas properties for sale and try to make the best of a bad situation.