What is expected for the Greek Real Estate Market during the new season: five concerning issues

The headline: «5 questions for ...»

Our interlocutor is Damianos Sachmpatzidis, Deputy CEO of Grekodom Development, a company which, despite all troubles and adversities caused by the extended lockdown, has managed to preserve a lead role in development market, and property purchase-and-sales within Greece and Cyprus.

The center of our attention is the Greek real estate market, which, along with the total economy of the country, is facing several difficulties.

We have chosen five questions which seem to be the most concerning for individuals with capitals and ambitions to buy properties in Greece. Below is the prediction of Damianos Sachmpatzidis regarding the development potentials of Greek Real Estate market in the near future.

Have the measures for citizen protection from the spread of the pandemic forced you to limit your transactions with foreign citizens?

  • Definitely, a deceleration is obvious, but the market has not stopped. If we are speaking for the local property market, the situation here has not changed in fact; Greek properties are sold and purchased with the same activity. It is more difficult with foreign clients, which intentions to buy properties in Greece face travel restrictions. As we know, from the beginning of last year, very strict measures have been introduced towards the protection from coronavirus spread. It is noted, that, on the one hand, these measures have been justified; Greece is amongst the countries which are successfully facing the pandemic consequences. On the other side, the country today, continues to operate in lockdown status, in compliance with international demands, while, during the previous year, the restrictive measures have changed.
  • Despite the complexity of the situation, we have found a compromising solution for private investments in Greece, in other words, for foreign investors, by introducing special invitations for entrance in the country in order to complete the purchase and sale procedure. I can not say that these clients were numerous, but we managed to complete a specific number of purchase-and-sales. The concerns of the Buyers have also affected their decisions; many potential clients did not manage to travel due to pandemic dangers.
  • Online sales have become more active. Of course, this is convenient only for Buyers who visit Greece regularly and are well acquainted with the distinctiveness of several areas of the country. In this case, the algorithm is as follows; the Buyer choses the Greek real estate property distantly and signs a Power of Attorney towards the lawyer, who is here and completes the purchase and sale. As a result, following the repeal of the lockdown measures, the foreign citizen will be able to visit his new home.

Has the pandemic brought any advantages for clients?

  • First of all, the size of offers for decent properties in Greece. Due to the decrease in demand, the property number has severely increased, and, while in the past these properties were “vanishing like hot cakes”, today they remain available in websites, which allows the potential Buyers to make a balanced choice, choosing the best of the best.
  • Secondly – no severe differences emerged in the “quality-price” scale. The price range for any property remains the same, so there is no reason to mention a decrease in prices.
  • The psychological factor needs to be mentioned as well; since there is no potential to meet contractors and visit the properties, the Buyers analyze a larger number of suggestions. The restrictions have made small negotiations possible. In other words, potential clients have acquired leverages and it is very rational that they use them.

Can you mention the most active Buyers per country?

  • The most active amongst the foreign Buyers are Bulgarian residents, for whom the Greek property in northern areas is very attractive due to geographical proximity; if there is free entrance, it is easy for them to reach the property with their own means of transport.
  • The local population dominates the local market, while in the foreign market, German and British citizens seem to have key roles in online investments in Greece. These are, by default, individuals who have visited the country repeatedly and know exactly where and what kind of properties they intend to purchase.

What is the secret of Grekodom lead role?

  • The stability of our company as a partner is proven by the fact that we belong to the famous “Mouzenidis Group”, with undoubted solidity and expanding potentials. Our offices operate throughout whole Greece, and the company is represented in 14 countries, while we have approximately 2600 partners in Europe, Asia and CIS or ΚΑΚ (Commonwealth of Individual States). We are one of the few companies which operate in both local and foreign property market in Greece. Managers speaking 15 languages are in the disposal of our clients, along with a full range of services; from the selection of a property until the after sale services.

What are the potentials for the real estate market development within the following six months?

  • We hope that tourist season of 2021 will be existent, lockdown will be repealed, and internal quarantine measures will be revoked. There are reasons to justify this hope: Greece has the strictest quarantine measures within the European Union. The opening of borders will boost the sales dynamic and, of course, the increase in prices. Algorithms which are forwarded by the Greek government towards the creation of a unified health passport will furthermore contribute to the timely recovery of the tourism industry and, therefore, to the interest towards Greek properties.

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