PANDEMIC & REAL ESTATE
The recovery of the economy in the real estate sector seems nightmarish.
Market participants explain that the high dependence of the real estate industry on demand from abroad, combined with the limited number of domestic sales, creates a suffocating environment.
Since the beginning of the year, the number of licenses issued is lower than ever.
The short-term leases that had fueled the resumption of the real estate market, bringing thousands of unprofitable property owners out of the impasse, are closely linked to the explosion of the Greek tourism , which is collapsing.
The days to come for buying real estate are not up at all
as the collapse of demand from abroad combined with the deterioration of the economic climate come to tear down the economy of the industry. Interest in acquiring real estate with the aim of investing has been limited. Of course, the reference is not made to luxury properties and established tourist destinations, but mainly to income real estate in which medium or small and medium-sized households had started investing in the last two years, as well as deposits that had remained unscathed from the financial crisis.
Industry recovery is related to how quickly medication and a safe coronavirus vaccine will be found.
As well as how quickly the injuries caused by the pandemic in the real estate market will be able to heal. Light in the tunnel will begin to appear from the beginning of 2021 according to real estate market players estimate, with the question being how many by then will be able to afford and not proceed with the sale of their real estate. With these data, experts advise those who have liquidity who would seek to channel real estate to wait, at least until the first quarter of 2021.
This is because the months that will be quite difficult, as the effects of the collapse of tourism on the real economy will become apparent, with the support measures taken not being able to fully offset the losses.
Short-term property owners seem to be holding a wait-and-see attitude
and state that they are willing to wait for the recovery instead of selling their properties.
With unemployment soaring and the economy collapsing, the possibility of multiplying stores at low prices could not be ruled out. However, according to analysts, the economic downturn in the real estate sector will not have the depth of the crisis of 2010.