| This burning question is equally important for | | | | deduction of property prices up to 15% is |
| anyone involved in the Real Estate market in | | | | expected". In this article another professor, Mr. |
| Crete, either as a seller or as a buyer. The | | | | Malliaropoulos was quoted saying, that inflation |
| specific article does not answer just with a Yes | | | | pressure in conjunction with the great offer of |
| or No. It attempts to provide a picture with | | | | properties in Greece and the expected interests |
| arguments and statistics indicating what is | | | | increase will lead in a correction of property prices |
| happening now and what may happen in the | | | | between 10 and 15%. This correction will happen |
| future. | | | | in stages. In the same article there is a reference |
| It is common knowledge that all real estate | | | | that at the moment, the main form of discount |
| professionals, no matter if they are construction | | | | offered to buyers is in kind, in the form of |
| companies or realtors have tried to believe that | | | | "presents". As for example, free air condition |
| everything is all right and that things will go well, | | | | units, bathroom furniture, pergolas, etc. |
| which is understandable and expected. However | | | | As much as we want to believe that Crete |
| at the same time we owe to face the truth and | | | | differs from the rest of Crete, especially because |
| provide sincere information to all interested | | | | of the intense interest from international buyers |
| individuals - buyers or sellers. | | | | the past decade, the truth is that it can not |
| In order to create a base of arguments we will | | | | escape the general climate. The first half of 2008 |
| examine a number of articles and statistics | | | | has proved that the interest of international |
| published in 2008. Exactly because most people | | | | buyers has decreased when compared with 2007 |
| outside Greece do not read Greek newspapers | | | | and so have the sales. It is enough to look at |
| we will refer exclusively to Greek publications so | | | | some of the statistics published in the local |
| that we can provide a picture from within the | | | | newspaper of Chania showing a deduction of |
| market. | | | | arrivals up to 35% compared with last year. We |
| In the Greek newspaper Proto Thema on the | | | | must all remember that buying a property abroad |
| 24th of February 2008, in an article of Mr. Kostis | | | | is usually a luxury and not a necessity for most |
| Plantzos a reference is made to data from the | | | | people, no matter where they are from. As a |
| Bank of Greece stating that the property prices | | | | result it is only logical that interested buyers are |
| increased by 10% to 15% during the past 10 | | | | holding back at the moment due to the situation |
| years. These are the percentages that made all | | | | in the world economy. |
| sellers and buyers equally happy exactly because | | | | So what is the meaning of all this for sellers of |
| whoever sold knew that the profits will go up and | | | | properties in Crete? It means that great care |
| whoever bought knew that it was a sound | | | | must be given to pricing because exaggerations |
| investment exactly because of these | | | | may delete the limited interest of some buyers. |
| percentages. | | | | Also, individuals must restrain themselves when |
| In an article in Kathimerini during the month of | | | | pricing their property for sale and Realtors are |
| March it was said that the average construction | | | | obliged to offer advice and guidance for this |
| cost compared with March of 2007 had risen by | | | | matter. |
| 5,6%. This was due to the increase of oil prices. | | | | What does it mean for the buyers of properties |
| One can say that constructors have the choice of | | | | in Crete? One may say that the situation is in the |
| either reducing their profit margin or limit the | | | | advantage of the buyers. This is the right time to |
| increase of prices of all properties under | | | | buy - especially key ready properties constructed |
| construction or off plan. | | | | recently or plots of land. If new constructions get |
| In the local newspaper of Chania, Neos Kirikas in | | | | even more expensive then these already built |
| the weekly publication "Idioktisia" (which means | | | | properties are better value. However buyers |
| Property) on the 10th of June 2008, mentions | | | | must keep in mind that any type of crisis may |
| that there is a deduction in demand but prices are | | | | create an opportunity, but greed can demolish it. |
| holding on. All constructors in Greece that do not | | | | Additionally, opportunities do not stay around for |
| suffer from excessive loans are displaying | | | | long. So for example if buying off plan gets too |
| patience and are renting some of the key ready | | | | expensive then the demand of Re sales or New |
| properties that have not been sold. Professor | | | | builds will rise. If that happens then all analysts |
| Hardouvelis of the Piraeus University was quoted | | | | agree that the prices of these properties will rise. |
| to say "Especially regarding residences, it is likely | | | | So at the end of the day things are not bad and |
| that a deduction of prices no more than 5% may | | | | professional Realtors and Property Consultants |
| occur, while commercial properties are expected | | | | exist in order to maintain the balance so that |
| to rise in demand - and as a result slightly rise in | | | | both, sellers and buyers, feel that they have |
| price". | | | | gained from every sale concluded, and everything |
| In the same publication in Neos Kirikas on the | | | | can turn out quite all right. |
| 24th of June 2008, the main title was "A | | | | |