Examining the effects of, and policy responses to, the 2008 financial crisis in the Greek real estate sector

Abstract

The global economic crisis that erupted in 2008 and had started in America has had a painful impact on the Greek economy. The collapse of the Lehman brothers had consequences all over the world, not only in America, where it was located. Its collapse was due to the inability of its customers to repay their loans due to long-term debt and interest. The bank's prosperity was based on loan repayments. The financial prosperity of the Greek banks, as well as most of the countries in the world, was also based on the loans for the purchase of real estate by the citizens. The financial crisis has created many problems for consumers and in particular the repayment of loans, which has led to the collapse of the banking system and the outbreak of the country's financial crisis. The fact that it has been unable to repair the recession and overcome the problems of the economic crisis makes the issue worth to studying. Moreover, the real estate market has not recovered yet, and this and this has led to changes in the housing sector. Specifically, rental prices have risen while the majority of owners prefer to make their homes AirBNB. It is obvious that the study of the Greek housing market and how the market reacted to global economic crisis must be studied. However, the fact that the crisis is not yet eliminated and will result the emergence of market reaction. It will also show whether its reaction is expected or not if it is consistent with the global real estate market.