Properties, Economy and Values: Exploring the Effects of Economic Crisis to Real Estate Values In Greece

Economic crisis has affected many countries, among which is Greece, creating strong interactions between the main economic factors and other once very vivid sectors. For many years, the real estate sector has been the most active economic sector in Greece as the concept of the best investment choice was the acquisition of a residential property. Moreover, as far as commercial properties are concerned, their rents were high enough to provide a satisfactory income to their owner.This paper investigates which economic factors did actually affect the real estate sector, the decrease of the prices and the inactiveness of the sector all over Greece. The population, the unemployment, the employment, the mean objective tax values, the initial construction cost of properties, the initial construction cost of shops, how many new properties and how many new shops exist are the variables that were entered in the hedonic model for the investigation of their influence on the decrease of the values.The results indicate that the economic crisis affected the real estate sector in many different ways apart from the expected. Unemployment, employment and population are the least influential ones, when the other factors influence the values in many different ways with many different explanations