Greece opens up huge prospects for investors. For example, the idea of redevelopment promises greater financial gain. Its essence is to acquire an irrelevant object and change it so that it becomes popular in the real estate market. In Greece, there is low demand for office buildings, but at the same time, there is a shortage of offers in the residential real estate market.
The essence of redevelopment in Greece
There are many unclaimed properties in Greece. In their current state and status, they are not interesting for either to tenants or buyers or even to the owner himself. The only sensible solution that will allow you to get financial benefits is to make a conversion. In accordance with Greek law, the owners of objects in the city can change their status. A full package of documents for changing the status of a building, for example, up to 1500 m2 will cost € 30,000.
Redevelopment is not only the reconstruction, restructuring, and redevelopment of the object in order to change its functional purpose, but also the renewal of documents. Thus, there is not only the actual but also the legal change in the functional purpose of the property. The number of square meters remains unchanged, and the internal content is transformed.
What objects should pay attention to
In modern economic conditions, restructuring of office space into residential facilities is beneficial; since it is precisely in them that there is a shortage at the present time. The prevalence of demand over supply in the residential real estate segment is largely due to the increased interest of foreigners in Greek houses, apartments, villas, and cottages due to their democratic cost and the possibility of obtaining a residence permit.
And office space is empty. This is due to the fact that since 2007 in Greece began the restructuring of the state apparatus. Under the reduction fell more than 180.000 employees. And office centers that used to be occupied by many state institutions are now empty.
Another important nuance is the drop in real estate prices in the country. Last year, they demonstrated relative stability (a fluctuation of 0.1%).
What buildings are good for redevelopment?
Large buildings are the best for the reconstruction. Their area must be at least 400 m2. Objects with an area of more than 2000 m2 should not be considered. It is desirable that the house was built no more than 40-50 years ago. Reconstruction of older buildings will cost more.
Also, you should not buy cheap objects that are in disrepair, since their restoration will cost much more than redeveloping a building in a serviceable condition. Choose objects in the center of Athens, for example, near landmarks or major infrastructure facilities.