As crisis continues, Greek real estate constructors have reduced selling prices by less than 10%, as due to previous years' earnings they can afford to keep prices high. Still, there is a large number of well underpriced bargains out there, coming mostly from private sellers and second-hand properties.
Let's review a simple example;
A UK citizen bought a vacation property in 2005 at €150,000 which then equaled approximately £100,000. As his family budget was running low, he decided to put his property on sale in 2008, aiming to sell without losing any of his money. What he does is offering the property at the price that he bought, adding purchase fees and taxes to it. So, selling price is £110,000, which in 2008 equals to approximately €120,000. Summer is known to be the real estate selling season in Greece and, as summer of 2009 passes, the seller realises there is low interest in his property. The property remains unsold and he decides to reduce selling price at €95,000, even though he is going to lose a part of his investment.
In tourist regions like Crete, the above case is common. Moreover, even prices reduced by 35%-40% remain negotiable, fact which makes such opportunities especially attractive. As normal, buyers will pay much more attention on the property of our example and will force other prices to drop. Besides our example, a constantly growing number of owners and constructors who cannot pay their loans have also dropped selling prices down to 40%.
There always were and there will always be bargains in the real estate market but, at the time being, their number is impressive and, if you already have the budget, it's a perfect time for a profitable purchase.