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During the previous year, the prices of both
newly-built and used homes decreased by a fur-
ther 20%, thus becoming more attractive to buy-
ers and investors. According to Eurobank
Property Services data, quantitative data do not
always provide an accurate marker, since sellers
are more willing to negotiate during this period,
which means that buyers can negotiate and
acquire properties at prices much lower than the
initial asking price. It should also be noted that in
many cases asking prices have been rationalized.
The decline at both asking, and final prices –in
which the deal is concluded– is even larger in
high-end areas of Attica and in regard to large
properties.
Asking prices in Kolonaki, the heart of Greece's
capital, took a plunge in 2011. According to this
survey, the prices of older apartments, which
account for the vast majority, fell by 15%, ranging
from 2,700 to 6,000 euros per square meter, while
there was a similar drop in the prices of newly-
built homes in the near-center areas of
Ambelokipi and Gyzi. In the northern suburbs of
Athens, for example Neo Psichiko, the prices of
newly-built apartments fell by 14% to 3,500-4,000
euros per square meter, while in the suburb of
Papagou prices fell by 8%. In Gerakas, the prices
of newly-built luxury maisonettes fell by 15% to
1,500-2,000 euros/m
2
, while apartment prices
start from 2,000 euros/m
2
and reach 2,700
euros/m
2
.
Nevertheless, the opportunities created by the
reduction in property prices are offset by the
heavy taxation, which has raised many con-
cerns among investors and buyers alike. This is
one of the reasons why all market players have
called for a reduction in property taxes, a
request that has not yet been adopted by the
government.
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