Foreign investing in Greek real estate is highly attractive for several reasons, according to Managing Director of Premier Realty Greece Corina Saias.
As Saias notes, investing in Greek real estate provides a combination of affordable prices, high return potential, lifestyle advantages, and strategic benefits. As the Greek economy recovers and tourism continues to develop, the Greek real estate market offers promising opportunities for both personal and financial advancement, she adds.
Specifically, the eight reasons that make Greek properties attractive to investors are as follows:
1. Real estate growth potential
– Tourism boom: Greece draws millions of visitors each year, boosting demand for rental properties in popular locations like Athens, Mykonos, Santorini, and Crete. Notably, tourist arrivals increased by 20.6% from January to May 2024 compared to the same period in 2023.
– Real estate recovery: The Greek real estate market has experienced consistent growth in house prices, building permits, and rental prices since 2017. In 2023, there was a 13.4% increase in prices year-over-year, up from 11.9% in 2022. However, house prices are still about 4% below the peak reached in Q3 2008, according to BNP Paribas. In contrast, Eurostat data shows a decline in prices across at least eight European countries such as Luxemburg, Germany and Finland.
2. Competitive prices
– Affordable property prices: Despite robust growth, Greek real estate remains competitively priced, especially compared to Western Europe. In the high-end segment, areas such as Vouliagmeni, Pigadakia, Ellinikon, Voula, Kolonaki, Kavouri, Cyclades, Santorini, and Crete have the highest prices per square meter. Conversely, regions like Kastoria, Karditsa, Florina, Thessaly, and Kozani have the least expensive prices per square meter.
– High-yield potential: Lower property prices, coupled with strong rental demand, can yield attractive rental returns ranging from 4% to 8.5%, depending on location and property type.
3. Golden Visa program
– Residency benefits: Greece’s Golden Visa program provides residency permits to non-EU citizens who invest at least 400,000 euros in real estate, under new regulations starting in August 2024. For the Region of Attica, the Regional Units of Thessaloniki, Mykonos, and Santorini, and the islands with a population of more than 3,100 inhabitants, the minimum value of real estate at the time of acquisition is 800,000 euros. This program offers access to the Schengen Area and can be a pathway to EU citizenship.
4. Lifestyle and climate
– Mediterranean climate: Greece’s favorable Mediterranean climate makes it an appealing destination for both vacations and permanent residence.
– Quality of life: Greece offers a high quality of life with its beautiful landscapes, rich history, cultural heritage, and relaxed lifestyle. The cost of living is relatively low compared to other European countries, and despite lower salaries, the quality of life remains high.
5. Real estate market trends
– Rising demand: International investors from countries such as Cyprus, the US and Israel are increasingly interested in Greek real estate, attracted by low property prices, government reforms, and potential capital gains. According to the Bank of Greece, the real estate sector absorbed over 40% of total foreign direct investment inflows, largely due to the activity of funds and servicers within the Greek economy. In 2023, net foreign direct investment in real estate rose by 8% year-over-year to 2.13 billion euros.
– Infrastructure development: Ongoing infrastructure projects, including improvements in transportation and urban development, are enhancing property values. According to PWC, global infrastructure needs are projected to reach around USD 77 trillion by 2040, with Greece ranking 37th globally and 18th within the EU for infrastructure quality.
6. Diverse investment opportunities
– Variety of options: Greece offers a range of investment opportunities, from luxury villas and coastal properties to urban apartments and commercial real estate. Additionally, Greece holds significant potential in key sectors such as tourism, agriculture, shipping, and renewable energy.
– Sustainability and real estate opportunities: There is an increasing availability of high-end properties, coupled with a growing interest in sustainable and eco-friendly housing developments. The Greek government has launched several initiatives to promote green real estate.
7. Tax incentives
– Favorable tax regime: Greece has introduced tax incentives for real estate investors, including reduced property transfer taxes and potential tax benefits for renovation and development projects.
8. Strategic location
– Geographical advantage: Situated at the crossroads of Europe, Asia, and Africa, Greece offers strategic benefits for trade, travel, and investment.
SOURCE; ANA-MPA
