Real estate in Greece, fad or real opportunity?
3 October, 2022
Sun, Sea, mythology, ancient temples, Mediterranean diet, captivating white and blue houses and the sound of the bouzouki highlighting each landscape engraved in our imagination are the construction blocks of dreams and happiness of living deeply transmuted by the Hellenic alchemy and concentrated in one magical name: Greece!
The sweet moments of vacation savored, often for many years, thanks before at a rented summer house in a location made for us, sometimes, are not enough.
Then, the idea or the project of buying a property in Greece was born. This is a real trend to which many foreigners fall in. There are so many anecdotic stories, charming or tragic experiences that are told about real estate purchases in this country that it seems legitimate to ask yourselves an essential question: should you really buy a property in Greece?
It is certain that the country public authorities have made considerable efforts over time to attract foreign buyers, in particular through the establishment of very advantageous tax regimes for Europeans tempted by the Greek adventure. Fad or real opportunity in the field of real estate? We will try to answer as well as possible, and with objectivity. The question looks important to us.
Greece's economic situation remains fragile after the 2008 great crisis and the measures imposed by the European Union from 2012. The dark years have passed and the country, although still heavily indebted, is managing to cope. Real estate markets havebeen stabilized and even started to rise again. It is not unwise to say that trust is back in this country, despite all the remaining problems regarding employment and average income.
As a member member of the European Union, Greece offers the best guarantee for secure investments.
The guarantees for investing in real estate in Greece are therefore sufficient to dare a personal purchase project or economic or professional investment.
Even today, despite the bad inflationary trends, as everywhere in Europe, daily life in Greece is easier than elsewhere with the most attractive cost of living on everyday basic goods, and especially on food products.
Hiring a taxi is not a problem with a cost rated at 50% compared to a Parisian one.
Greece gets its financial resources from tourism at a level of approximately 40% of its GDP. It knows and manages well the advantages of its international attractiveness and knows how much foreigners can contribute to national wealth. Following this logic and in a permanent search for seduction that tax policies have been relaxed in order to motivate the settlement of foreign wealthy people, remote and nomadic workers but also retirees from the European Union who would come to settle in Greece. Foreign real estate investors are particularly welcome.
Despite a strong recovery in real estate, and therefore an increase in the prices and value of properties which had lost more than 50% at the height of the crisis, the market remains attractive and prices are still very competitive compared to other major European cities or capitals. The prices of apartments and houses in tourist areas and by the sea still allow for some good deals, whether on the mainland or on many islands, apart from the most famous and luxurious ones which have become unaffordable for ordinary mortals since several decades.
Saving investors can find some great opportunities in the hotel industry and rental property investment.
The COVID 19 crisis has had a strong impact on Greece, which has suffered from a spectacular decrease in tourist activity which has revealed all the risks of too high dependence on tourist activity.
In this context, the expansion of attractive measures that can encourage foreigners, European or not, to settle permanently and generate human and economic activity favorable to development, has an interesting future. Real estate is a major path in this Greek recovery plan.
Several projects still have to be launched, particularly in tax matters because the property tax, which is high, should be redesigned. The payment of VAT at the rate of 24% on real estate acquisitions has been suspended until the end of 2022. It would be difficult to restore it at this level and the suspension should be renewed. To date, no official decision has yet been made.
As a conclusion, we can consider, in th light the above, that Greece remains a place to be for very interesting real estate opportunities for those who will know how to remain wise and who will be keen to build a thoughtful and well thought out project.
No large scale large-scale commercial projects will be found in Greece as those we saw in the Iberian Peninsula at a time when the fashion was for the small and cheap house in the sun. These projects have aged badly and fashion has passed…
Families, retirees, investors all have atop chance to make a great deal in Greece which will be stable and profitable over time.
Mobilia Real Estate is at your side to guide you, advise you and support you in your research and your procedures in Greece. Never hesitate to contact us.