The Greek Commercial Real Estate market has been, historically, a turbulent market.
On the one hand stringent legislation restricts the fluidity of the supply and demand function; for example the renter can only with great difficulty force a commercial business to abandon the rented premises in question.
Greek Government Laws
On the other hand, mainly because of the aforementioned laws, the renter usually and even in times of crisis, demands unreasonably high prices from the commercial business renting the premises in question.
These high prices have to do with the renter's sometimes misguided perception as to the actual value of the property being rented, but also as a shield against future problems with the commercial enterprise, and the difficulty in forcing the specific often delinquent business to abandon the rented property.
In Greece, forcing a business to abandon rented premises, even if the particular business has stopped paying rent, can be expensive as well as time consuming and usually requires a court injunction; another time consuming factor.
Greek Commercial Real Estate Investment
The Greek government has imposed a number of measures with the hope of stimulating the market, and alleviating debt burdened merchants from bankruptcies. One such measure includes the finance ministry's intervention in the formulated rent contracts and asphyxiating rent related measures.
These government measures have indeed provided a breath of fresh air to problematic businesses, but have also eroded further the Greek commercial real estate market as an investment vehicle. It should be noted that as per Greek commercial real estate firms Aspis and Triad Real Estate estimations, the said market has suffered in the last two years a 30% decline in value, a negative price spiral that is expected to dramatically continue this year and in 2011.
SOURCE:
http://investment.suite101.com/article.cfm/the-greek-commercial-real-estate-market-in-2010
On the one hand stringent legislation restricts the fluidity of the supply and demand function; for example the renter can only with great difficulty force a commercial business to abandon the rented premises in question.
Greek Government Laws
On the other hand, mainly because of the aforementioned laws, the renter usually and even in times of crisis, demands unreasonably high prices from the commercial business renting the premises in question.
These high prices have to do with the renter's sometimes misguided perception as to the actual value of the property being rented, but also as a shield against future problems with the commercial enterprise, and the difficulty in forcing the specific often delinquent business to abandon the rented property.
In Greece, forcing a business to abandon rented premises, even if the particular business has stopped paying rent, can be expensive as well as time consuming and usually requires a court injunction; another time consuming factor.
Greek Commercial Real Estate Investment
The Greek government has imposed a number of measures with the hope of stimulating the market, and alleviating debt burdened merchants from bankruptcies. One such measure includes the finance ministry's intervention in the formulated rent contracts and asphyxiating rent related measures.
These government measures have indeed provided a breath of fresh air to problematic businesses, but have also eroded further the Greek commercial real estate market as an investment vehicle. It should be noted that as per Greek commercial real estate firms Aspis and Triad Real Estate estimations, the said market has suffered in the last two years a 30% decline in value, a negative price spiral that is expected to dramatically continue this year and in 2011.
SOURCE:
http://investment.suite101.com/article.cfm/the-greek-commercial-real-estate-market-in-2010
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