After almost a decade of economic instability in Greece, foreign investors began to invest more actively in local real estate. In general, the situation in the country at the moment is far from ideal. But the danger of Grexit has passed, and positive trends have appeared. Investors saw the benefits of real estate for short-term and long-term rent, as well as from subsequent resale. And the Golden Visa program is still in trend.
A turning point
Greek real estate has again become attractive to investors. And last year was decisive. In 2018, the Greek government managed to strengthen the economy, achieve certain stability and even achieve a budget surplus.
Investors' confidence in the prospects of the Greek real estate market and price stability have led to increased demand for new real estate. Demand for the residential sector has returned to the pre-crisis level. And according to the Bank of Greece, foreign direct investment in real estate has already amounted to € 0,5 billion.
The average decline in residential property prices from the end of 2008 to the end of 2017 reached 42%. In Athens, the value fell by 44.2%. From 2015 to 2017, the indicators of falling prices became more positive: in 2015 – by 5.1%, in 2016 – by 2.4%, and 2017 – by only 1%.
Why is Greece attractive to the investors?
Golden Visa Program
The program allows you to get a residence permit when buying real estate worth at least € 250,000. The opportunity to settle in a European country is actively used by the Chinese, Russians, Turks, and residents of the Middle East.
Rent, sale, and renovation
According to analysts, investors are counting on high rental returns with comparatively low cost of real estate. Now in Greece, construction of new residential real estate is underway and reconstruction of old buildings is ongoing. There are already many administrative facilities that investors have officially re-registered as residential. After reconstruction in an apartment building, the apartments in them will be put up for sale.
Short term rental
In Athens and other popular tourist cities across the country, including the islands, the demand for short-term rental housing is growing. Mostly through the Airbnb service. And since the tourism industry in Greece is now developing rapidly, the growth of holidaymakers guarantees a big profit for homeowners – investors.