The property agent Knight Frank is predicting a "fire sale" of Greek islands over the next few years. The upmarket property company says in its latest Islands Report: "As the long-term ramifications of Greece's financial bailout play out more fire-sales of Greek islands are expected." Last year Greece introduced its first tax on real estate under pressure from creditors who wanted it to raise more cash to pay down debts. The tax made owning a private island suddenly unaffordable for some owners — the asset-rich, cash-poor problem. About 20 Greek islands were put on the market last year, and Knight Frank expects more to follow as the implications of the property tax begin to hit home for more owners. The latest Greek bailout deal reached Monday imposes more austerity on Greece, which is likely to lead to a further squeeze on private wealth. Given Syriza's hard-left leanings, fiscal consolidation will most likely hit the rich more heavility than it previously has. Knight Frank notes that Greek islands will probably attract "bargain hunters," and foreign investors are already turning to Greece to hunt out good property deals. The Independent reported on Saturday that Russian, Chinese, and even Serbian and Bulgarian investors were buying up discounted properties.Join the conversation about this story » NOW WATCH: How Richard Branson gets fresh water on his private island
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