I agree with Nickolas on this. Property prices in Greece rarely fall.

One thing that may be different this time round, however, is that UK-style mortgages are a relatively new phenomenon in Greece and there's enough evidence to suggest that Greek people have overstreched themselves to buy their first property. My personal opinion (and I'm sure others may disagree) is that we may see some falls in Athens and other major cities as the credit crunch bites and the economy slows. In other regions, however, I'm expecting prices to stay put for a while and then rise again. As Nickolas says sellers in rural areas would rather wait to get the full asking price rather than drop the price.

I also would like to add that that one of the knock-on effects of the slowing economy is that a large number of people will no longer be able to afford a place in a large city and may decide to move to a rural area where the cost of living is lower. There's a trend, especially among young couples, to leave the big cities. This may therefore prevent prices on islands and other rural areas from dropping as demand for housing there is likely to increase.