prices bending to pressure
Plus, 29 January 2010
Residential property prices fell 6 percent year-on-year in 2009 in
the broader Attica area, according to data provided by Aspis Real Estate.
Data compiled by the realty agent showed that in the Athens basin,
the prices of newly constructed homes (up to five years old) in Piraeus
fell 6.8 percent in relation to the previous year, followed by drops
of 5.3 percent and 5.2 percent respectively in the western and southern
suburbs of Athens.
The smallest drop was in the northern part of the capital, where prices
fell by 3.7 percent on an annual basis.
"There have been no sudden price drops in the residential property
market in Attica, as prices continue to decline moderately [in a trend]
which had started in mid-2007 and picked up in 2008 and 2009," Aspis
Real Estate managing director Daniil Psomiadis said. If inflation over
the three years is taken into account, average real prices dropped
by 16-18 percent.
In the broader region, the biggest average drop (18.2 per cent) was
recorded in Porto Ratti (detached houses), where prices fell from 2,200
euros per square meter to 1,800 euros, followed by Ano Petralona (15.5
percent) and Aspropyrgos (14.3 percent).
As for older houses in the Athens area, the largest declines were seen
in the areas of Peiraiki (19 percent), the center of Zografou (15 percent),
Vyronas and Perama (14.3 percent). Prices of both old and new houses
remained steady in Galatsi, Ano Ilisia, Hatzikyriakio, Nea Ionia and
Agents predict that prices will continue to dip in 2010.
Separately, the supply of new houses is projected to drop to the lowest
level in the last decade, over the 12-month period ending in June,
as indicated by a recent survey of building permits issued.
The number of newly built apartments expected to have entered the construction
stage since last June is around 55,000, down from 58,000 in the previous
National statistics show that investment in housing (at constant prices)
dropped 6.8 percent in 2007, 21.9 percent in 2008 and 22 percent in
The decline is reflected in employment in the building sector, where
many small and medium-sized firms last year reduced their staff by
up to 40 percent relative to 2008.