ARiadni Real Estate Blog

Reduction of up to 30% in the price of old apartments

7 October, 2020

Domestic real estate is expected to move at many different speeds in the next period, in the shadow of the continuing effects of the coronavirus pandemic.

Regarding the purchase and sale of real estate, the prices of newly built apartments are expected to remain mostly high, while the prices of used / old real estate are expected to be under pressure.

As market players explain, in the current situation, the sellers of real estate are essentially keeping a waiting attitude, while the real sales that will take place, will record significant reductions in relation to the initial asking selling prices of the owners.

As insider.gr has already written, the reason that the prices of newly built apartments remain at high levels is the following: The number of available really newly built properties and not renovated, is small in relation to the total number of properties available for sale. In fact, prices are not expected to be directly affected by the economic impact of the pandemic. And if they are affected, it will be to a very small extent.

The picture in old real estate is different

At the same time, the picture that prevails in the market of used old real estate is different.

"Depending on the needs of each seller, most of the sales will be completed with significant reductions in the requested initial selling prices of the owners. The properties that will be at the center of great pressures for the reduction of the selling price demanded by the interested buyers will be mainly the used old properties and mainly properties over 20 years old. We believe that the biggest reductions will be recorded mainly in properties aged 30-40, where their owners saw their values rise in the previous period ", comments the president of the Panhellenic Real Estate Network E-Real Estates, Themistoklis Bakas.

How much can price reductions for older properties reach?

According to the latest available data, in the recent purchases and sales, a decrease of the initial requested selling price is recorded at a rate that starts from 10% and reaches even 25-30%, always depending on the type of property, the area in which is the current need of the owner for immediate sale.

"In the used properties of older people over 20 years old and mainly properties of 30-40 years old, there are already pressures of the requested selling prices from the interested buyers, mainly if they aim at the immediate renovation and resale", adds Mr. Bakas.

Where the sale price reductions will depend

Experts in the domestic real estate market say that the extent of the reductions in sales prices will depend on the general economic environment of our country, the middle of the pandemic, the dynamics of the middle class, the attitude of foreign investors to the Greek real estate in the coming period, as well as and the number of available properties for sale in the Greek real estate market and their asking price.

Determinants for the formation of selling prices in used real estate will be the frequency and prices at which the real estate portfolios held by funds and banks will be marketed, as well as the rate of implementation of auctions in the near future for borrowers. which do not fall under protection. Selling prices are expected to be particularly volatile after the start of lower real estate auctions.

Marina Founta

www.insider.gr