Greek Real Estate Prices Persist: Russian Buyers Prefer other ...
Is considered a sound investment that appreciates in value as well as a traditionally strong investment vehicle.
This may be changing:
The last couple of months have claimed witness to Russian interest shifting from Greece to other Mediterranean vacation favorites, most notably Spain.
The Effects of the Economic Crisis on Greek Real Estate
The continuing economic crisis and its collateral effects to the Southern European Economies have resulted in a number of macroeconomic problems and related uncertainties which have in general impacted negatively the real estate market.
Job uncertainty coupled with public hesitation towards large scale investments such as home buying and the fact that banks will not even consider risky real estate loans have resulted in a cash crunch and tumbling of real estate prices in most markets including Spain, Portugal, Southern Italy and -up to a point- Southern France.
In all this turmoil, Greek Real Estate prices have remained stubbornly high , resulting in an uncompetitive market vis-à-vis markets with equivalent attributes and characteristics.
These high prices have prompted foreign investors to seek other markets for house buying and real estate investments, and have resulted in a sudden halt of construction projects and other house building activities in Greece.
Real Estate Investors Flock to Cheaper Destinations
Russian capital for example was the prime mover of a number of development projects in Crete -like Cyprus, a Russian vacation and investment favorite- which involved land targeting, buying, landscaping, construction, development and selling activities. This primary construction industry was supported and gave value to a number of secondary industries that had to do with preparing the sales object – the house- for sale. So industries and retail business that were involved in construction materials, interior decorating, green technologies as well as services dealing with electricity, plumbing, gardening, cleaning and what have you, thrived from this unprecedented infussion of Russian Capital.
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