Moody's: Modest hike in Greek real estate prices after 10 years of decline; obstacles remain

Tuesday, 02 April 2019 14:54
UPD:14:56
Konstantinos Tsakalidis / SOOC/Konstantinos Tsakalidis
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Real estate prices in Greece will continue to increase, on average, but at ονλυ very moderate rates over the next 12 to 18 months, according to Moody's.

The international ratings firm refers to a decidedly positive development for battered Greek lenders, residential mortgage-backed securities (RMBS) and for the sale of secured bonds. At the same time, Moody's points to an aging population and excessive taxation as dampening the sector's growth.

Based on figures at its disposal, Moody's estimates that residence prices increased by a modest 1.5 percent in 2018, the first increase after 10 years of economic crisis. Improved macroeconomic conditions and high foreign investment in the property sector also boosted prices.

High interest rates for mortgages and very tight lending by Greek banks, who are struggling to reduce NPLs on their balances sheets, nevertheless continued to exert pressure on real estate.

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