Real estate was one of the sectors that was driving the growth during the last decade in Greece. Construction was booming, margins for contractors were extraordinary, debt led demand was there and, as a result, market participants increased significantly. Unfortunately due to the eventual oversupply and the radical demise of demand due to the crisis, the boom had led to a bust. During the past two years, only a limited number of transactions are taking place due the evident lack of liquidity, the difficulties of local banks to inject liquidity in the form of mortgages and a lagging price correction caused by contractors who can afford not sacrificing margins due to the strong cash generation during the boom years.

However, Chaviara says the country can come back, in part because of its tourism draw. “As the Germans once said “Greece is the Florida of Europe”, she says. “It is considered to be the premium plot of Europe. It is the only EU country with so many islands, more than five hundred, and most of them are virgin.”

In the years to come, she says Greece will offer a lot of real estate opportunities not only to locals but also to European and American Investors, as soon as the new tax structure and real estate regulations will be in place so as to bring growth.

“If Greece manages to implement the structural reforms and growth led initiatives are adopted, then it will rise from its ashes, stronger, healthier and a valuable member of the European family,” Chaviara says. “Greece’s geopolitical position, in the cross road of Europe, Africa and Asia, its undeniably competitive tourism sector and its dominance in the global maritime shipping sector highlight the potential that a reformed Greece could offer to Europe and the currency zone.”

The alternative move to stop default, a potential euro exit could be disastrous. The competitiveness gap would have to narrow through a step devaluation of the new currency while in parity terms high annual inflation rates would counterbalance the relationship of the country with the rest of the world. “As Greece is by far a net importer of goods, the implications of the above recipe for the buying power of Greeks would be devastating,” Chaviara says.