Greek property prices nose dive

• Recession and deflation in Greece is more acute than any of its Euro zone partners. Moreover it continues to suffer over a funding crisis that may lead to a Grexit, according to some economists and market participants.

• Yesterday, ECB has cleared its inability to accommodate the Greek bonds for the current purchase programme unless the political gridlock improves the situation that might lead to a successful review by TROIKA. ECB has already hit the issuer limit of 33 percent for Greece as per the QE rules.

Greek property prices -

• Office price - Office prices are down in Athens (31.7%), Thessaloniki (31.8%), and the rest of the country (31.5%) in the first half of 2014, compared to 2010, as per the latest data available from Bank of Greece.

• Office rent - Rent is down by 26.9% and in Athens 29.6% compared to 2010. Prices declined by 10.7% compared to 2013 for the same period.

• Retail price - Retail property prices dropped by 28.8 percent in first half 2014 compared to 2010. In Athens the drop is close to 30 percent. Prices dropped close to 9 percent compared to 2013 same period. The rate of decline shows signs of accelerating.

• Retail rent - Rents declined by 31.6 percent in Athens and 29 percent in the country for the same period.

In view of the dire situation in Greece and ECB's inability to buy the Greek bonds, it is expected that the yields spread would deteriorate further between Greece and the Euro zone partners.