The economic crisis has had a highly negative effect on property values in Greece over the last ten years. On top of that, the property market in general, is very sluggish. With so much brand new or at least more modern property sitting empty as a result of the recession, it is now clear that certain properties, typically those with a poor standard of construction and or older ones, in less attractives areas, will ultimately become unsellable and as such, will almost certainly face demolition.
The Hellenic Valuation Institute, (ELIE), estimates that there are around 500,000 empty properties of all different types, all over Greece. When the economy returns to growth, these properties will still remain stagnant in the marketplace and will only have the new, lower value of the land that they are standing on.
The reasons for these properties now having remained empty or run down for so long, are varied, including lack of low price level tenants in the rental market, mostly immigrants who have since left the Country. To the ongoing emigration of younger Greeks, (approximately 450,000 at recent count), or of those who have returned to live with relatives. But also, to industry and corporate closures in specific areas, with the subsequent job losses.
In addition to all other factors, the demographics in Greece have been on a downward curve for several years, which is also creating a surplus of required property.
As the market begins to recover and due to the high costs in building materials and manpower, these types of property or more accurately, the land they are built on, could possibly become opportunities in the property market.