Estate agents optimistic about greek election result
Syriza celebrating its election victory on Sunday 25th January Photo: Syriza (Facebook)
This week saw left-wing party Syriza seize power in Greece, winning 36 per cent of the vote in a snap general election. The party's campaign to put an end to the country's austerity measures and renegotiate its bailout terms won widespread support from cash-strapped voters, but also spread concern across the eurozone, as uncertainty surrounding Greece's membership of the euro and the single currency's weakness was amplified.
Nonetheless, estate agents are optimistic about the result.
The party has already pledged to remain in the euro, while its lack of an overwhelming majority appeared to reassure markets in the day following the election result.
Most important for the property market, though, is its promise to scrap the "Enfia" property tax. The levy on private property, which was introduced by previous governments to raise emergency funds, has been unpopular among homeowners. Instead, it will be replaced by a tax on prime properties and large second homes, a prospect that has been received as much fairer by many.
"We hope that the new government will fulfill their promises and support economic growth," says John Karagiannis of RE/MAX.
Speaking exclusively to TheMoveChannel.com, Karagiannis comments: "We believe that the government will quickly understand that the real estate market is the moving gear of our country and will help the well-being of the country."
"The Greek economy will slowly find its steady path," he predicts, "and the consumer's psychology will become more positive."
Angelos Koutsoudes, Head of OverseasGuidesCompany.com echoes the cautious optimism, predicting a "lull until the country’s economic future is clearer".
"While Greece’s new government attempts to re-negotiate their anti-bailout terms with Brussels, uncertainty over the country’s economic policy and political stability could deter foreign buyers from purchasing property there, at least on a temporary basis,” he says.
"But remember, Cyprus was in a similarly precarious situation two years ago, yet has remained in the euro and today foreign interest in property there is returning."
"It could also cause movement in the sterling/euro exchange rate," he adds. Indeed, the euro is hovering around a six-year low against sterling, fuelled by the recent decision to introduce Quantitative Easing to boost the eurozone economy, as well as Switzerland's decision to unpeg the Swiss Franc against the single currency.
"This is certainly good news for Brits on the verge of purchasing property in the Eurozone," Angelos comments. "Whether the euro can recover or will lose more value is unknown, but in the short-term will depend on whether Greece can reach an agreement with Brussels that instils confidence in the global markets."
Karagiannis, whose office is based in Domi Volos, continues: "We believe that with the suitable European support and with the correct inside changes, our economy will grow."
As for foreign buyers, he is equally upbeat: "We believe that now is the best time to invest in real estate because the value of residential homes has dropped more than 50 per cent [from the market peak].
"[Asking prices] are more tempting than ever."