Greece Economy News: Should You Buy a Greek Vacation Home Amidst the Country’s Debt Crisis?

Posted by Staff Reporter (media@realtytoday.com) on Jul 27, 2015 07:30 AM EDT
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Migrants Continue To Arrive On Greek Island Of Kosmore big
KOS, GREECE - JUNE 03: A man relaxes under parasols on the beach front on June 03, 2015 in Kos, Greece. The Island has recently seen a drop in tourist numbers which has been attributed to negative reports on the migrant crisis that is continuing to grip the area. Many migrants are continuing to arrive on the Greek Island of Kos from Turkey. Around 30,000 migrants have entered Greece so far in 2015, with the country calling for more help from its European Union counterparts. (Photo : Dan Kitwood/Getty Images)

Greece's current economic crisis has reportedly sparked interest and bargains in its real estate properties. Is it a right move for investors or potential homeowners then to purchase a property in the debt-fallen country?

According to Realtor, though there are indeed possibilities, the "sales is in limbo." Quoting Wall Street Journal, the report states that "sales have dried up" on the popular Mykonos Island. It said that though residential investors are keeping an eye on properties, actual transactions rarely take place because of the uncertainty of the country's future.

"There are limited transactions at this point. No one knows what is going to happen next, so there is very little confidence," Dmitris Manoussakis, head of real estate firm Savills in Greece, said.

Though that's the case, the report implied that "there's nothing wrong with being ambitious," and keeping an eye on Greece real estate is a wise move for now. In fact, Greek Islands reportedly hint a brighter future than mainland Greece. While both areas have suffered from decline in home prices, Greek Islands such as Mykonos have reportedly stabilized and picked up a bit, with the infux of tourists sustaining the market.

Meanwhile, a previous report from Business Insider states that Russian buyers are eager to purchase Greece villas with the price decline of luxury properties due to the country's economic meltdown.  The sales of luxury Greek villas by Russian buyers have reportedly more than doubled compared to last year's.

"If a villa on the Greek island of Syros still cost €1.6m a few years ago, it is now selling for just €800,000," IRM founder Isabelle Razi told Newsweek. That's a fall to roughly $870,000 from $1.74 million with today's exchange rates.

Some real estate agencies also apparently have come up with package deals for Greece real estate properties. This includes Razi's IRM Aegean Estate, which offers two Corfu villas with private beach for only $4.9 million.

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