Greece has suffered the second largest property crash in the EU since the financial crisis.
According to Eurostat, the largest property slump was in Croatia, the EU’s newest member.
Since the outbreak of the Greek debt crisis four years ago, property values across the country have slumped by around 32%, according to the Bank of Greece. But many estate agents say prices have dropped by half in the last four years.
A steep rise in property taxes has further cost owners dear. The tax burden is said to have increased sevenfold in the past two years alone.
Property values in Greece peaked around the time of the 2005 Olympic Games there. That year saw 250,000 sales in Athens alone. Last year, there were just 3,600 sales in the capital.
The 87% rate of ownership is the highest in the EU. But more than one-third of households are not able to pay their taxes.
A recent poll showed that four out of ten Greek owners said they would willingly hand over properties to the state to fulfil future payments while one in three are afraid their homes will be repossessed this year because they cannot pay their mortgages.
At no time has such a glut of property on the market existed, according to the Hellenic Property Federation (Pomida), which reckons more than 500,000 property owners want to sell. Across Greece, about 300,000 residences are believed to be empty.
The Federation said it is a “golden opportunity for northern Europeans who want to buy a holiday home or plot to develop for business”.
Northern Europeans and others were already alert to the possibility of cheap prices and a new law granting residence permits to non-EU citizens.
Greek politicians are hoping the slow re-emergence of foreigners buyers will pick up pace. This, they believe, would be part of the solution to one of Greece’s biggest problems.
