Greek house prices dive continues for seventh year

Greek housing prices fell 5.1 percent in 2015 compared with an average drop of 7.5% in 2014, meaning residential properties are now worth 41.5 percent less than in 2008, before an enduring recession that forced the country close to bankruptcy, official data showed on Monday.

Apartment prices fell by 5.4 percent year-on-year in the fourth quarter and while that was less than a 5.8 percent drop in the third quarter, there was no clear indication that the price plunge was close to being over, the Bank of Greece mentions in the following report:

Indices of apartment prices by age and geographical area 

According to data collected from credit institutions, in the fourth quarter of 2015 the prices of “new” apartments, i.e. up to 5 years old, dropped by 5.7% year-on-year and the prices of “old” apartments, i.e. over 5 years old, fell by 5.2% year-on-year. The prices of “new” apartments declined by 5.5% on average in 2015, against a decline of 6.5% in 2014, whereas “old” apartment prices declined by 4.7% in 2015, against a drop of 8.1% in 2014.

According to data broken down by geographical area, in the fourth quarter of 2015 apartment prices are estimated to have declined year-on-year by 4.9% in Athens, 5.9% in Thessaloniki, 6.1% in other cities and 5.3% in other areas of Greece. For the whole of 2015, apartment prices dropped on average by 5.3%, 5.3%, 5.2% and 4.4% respectively in the above-mentioned areas. Finally, as regards all urban areas of the country, in the fourth quarter of 2015 apartment prices declined by 5.5% year-on-year, whereas for the whole of 2015 the average annual decline was 5.0% (the apartment price index for urban areas, according to Law 4254/2014, is used to compute the capital gains tax on property transfers).

Tornos News

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