The large decline in transfers was not able to stop the upward trend of prices
Property transfers fell sharply during 2020, as the restrictive measures and the uncertainty caused by the pandemic did not favour the real estate market. In particular, in the municipality of Athens, transfers decreased by 53%, as only 2,289 apartments changed hands during 2020, compared to 4,852 in 2019.
According to the contracts submitted to the General Secretariat of Information Systems last year, in the area of Nea Smyrni 120 properties were transferred, compared to 292 in 2019 (59% reduction). In Glyfada the corresponding percentage reaches 46% as 106 houses were sold, instead of 197 in 2019, while in Kallithea 223 transactions were made compared to 413 in 2019.The main reason for transfers decrease is the blow that the pandemic has caused to the short-term Airbnb type transfers, but also the search for property under the Golden Visa program.
The lack of interest from foreign buyers during the past year has changed the balance of the market, as in recent years foreign buyers have been the driving force for market growth. For this reason, the transfers decline is greater in the center of Athens and the southern suburbs, which are traditionally the first choices of foreign buyers.
At the same time, the uncertainty caused by the pandemic in Greek households and the difficulty of securing bank lending, do not allow domestic demand to cover even part of losses.
The market paradox
The paradox is that the large decline in transfers was not able to stop the upward trend of prices even if the growth rate slowed down in 2020. Based on the third quarter, the biggest increase in prices occurred in the area of Athens (Attica) by 5.6%, compared to the corresponding period last year. Respectively, in Thessaloniki, the increase reached 4.3% and in the rest of the country 1.5%. On the other hand, in the other big cities there was a marginal decrease of 0.3%.
