CoS decision irks realtors, builders

Real estate market players predict a reduction in the supply of new homes and income properties in general, due to the compression of builders' profit margins, for the coming period, especially after the decision of the Council of State against the bonuses of the new construction regulations.

"The supply problem will worsen because builders' profit margins have been compressed and because of the increase in the asking prices for plots and the prices of existing properties," Hellenic Properties CEO Errikos Arones said on Friday in the context of a relevant briefing.

According to Arones, "at the same time, costs have not declined and the availability of builders and contractors remains at a moderate to poor level. All these factors combined have a negative impact on profitability and are expected to lead several companies to have second thoughts as to how many and which...