Managing Director of Premier Realty Greece, Corina Saias, spoke to the Athens-Macedonian News Agency (AMNA) about the opportune time for foreign investors to buy real estate in Greece.
According to Saias, at the moment, Greek real estate can now be bought at affordable prices with a high return potential, lifestyle advantages, and strategic benefits.
As the Greek economy comes out of the slump and the number of tourist arrivals increases each year, the Greek real estate market offers promising opportunities for both personal and financial advancement, she added.
Eight reasons to buy property in Greece
Saias has said there are eight reasons, which are identified below, why Greek properties are attractive to investors.
Real estate growth potential: As Greece draws over 30 million visitors each year, there is great demand for rental properties in popular locations such as Athens, Mykonos, Santorini, and Crete. Notably, tourist arrivals increased by 20.6 percent from January to May 2024 compared to the same period in 2023. Furthermore, Greece is seeing real estate recovery. That is, 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 percent increase in prices year-over-year, up from 11.9 percent in 2022. However, house prices are still about 4 percent below the peak reached in Q3 2008, according to BNP Paribas.
Competitive prices: Despite continuing growth, Greek real estate remains competitively priced, especially compared to Western Europe. High-end areas include places like Vouliagmeni, Ellinikon, Voula, Kolonaki, Kavouri, Cyclades, Santorini, and Crete. Property in these areas have the highest prices per square meter. Conversely, regions such as Kastoria, Karditsa, Florina, Thessaly, and Kozani have the least expensive prices per square meter. Furthermore, there is a high-yield potential. As more and more people move to Greece, lower property prices, coupled with strong rental demand, can yield attractive rental returns ranging from 4 to 8.5 percent, depending on location and property type.
Golden Visa Program: Of course, there are also residency benefits to investing in property in Greece. Greece’s Golden Visa program provides residency permits to non-EU citizens who invest at least 400,000 euros in real estate. This is under new regulations beginning 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. The program offers the buyer access to the Schengen Area and can be a pathway to EU citizenship.
Lifestyle and climate: The Mediterranean climate in Greece provides residences with 300 sunny days a year. The weather thus makes the country an appealing destination for both vacations and permanent residence. That being said, there is generally a slower pace of life, and residents can enjoy beautiful landscapes, a rich history and cultural heritage, and a relaxed lifestyle. The cost of living is relatively low compared to other European nations, and despite lower salaries, the quality of life remains high.
Real estate market trends: International investors from countries such as Cyprus, the US, and Israel are increasingly interested in Greek real estate, as they are attracted by low property prices, government reforms, and potential capital gains. According to the Bank of Greece, the real estate sector absorbed over 40 percent 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 percent year-over-year to 2.13 billion euros. Ongoing infrastructure projects, including improvements in transportation and urban development, are enhancing property values. According to PricewaterhouseCoopers (PwC), global infrastructure needs are projected to go up to around USD 77 trillion by 2040, with Greece ranking 37th globally and 18th within the EU for infrastructure quality.
Diverse investment opportunities: Greece offers a range of investment opportunities, from luxury villas and coastal properties to urban apartments and commercial real estate properties. Additionally, Greece holds significant potential in key sectors such as tourism, agriculture, shipping, and renewable energy. There is also 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.
Tax incentives: Greece has introduced tax incentives for real estate investors, including reduced property transfer taxes and potential tax benefits for renovation and development projects.
Strategic location: Situated at the crossroads of Europe, Asia, and Africa, Greece offers strategic benefits for trade, travel, and investment.
Rental prices skyrocket in Thessaloniki
Rental prices in Thessaloniki, Greece’s second largest city, skyrocketed in light of the metro system’s onset of operation on Saturday, November 30th.
The new metro in Thessaloniki, a long-awaited project, is a cause for celebration for locals, as it will play a role in the de-congestion of the busy roads. At the same time, the new development creates a problem for businesses in the center of the city, as rent prices skyrocket, voria.gr news portal reports. For foreign investors, Thessaloniki is a new Greek real estate opportunity.
Characteristically, the report cites a case in which a 40-square-meter shop on Egnatia Street, the city’s main street, now rents for 2,700 euros, which is triple the price prior to the onset of the metro operation.
Regarding businesses in general, rents for shops, cafes, and businesses on Egnatia Street have doubled now that the metro is ready to operate.
During the long construction period of the Thessaloniki metro, business properties were empty around construction sites. Now, the same real estate properties resemble a stock market, as owners try to make up for lost revenue by raising rental prices to the roof.
A typical example is a store of approximately 40 square meters at the entrance to the Venizelos Station, which was rented out for 2,700 euros per month. A year ago, rent would have been less than one third of the price.
The number of available commercial real estate close to metro stations has shrunk significantly. As Savvas Alvanoudis of Alvanoudis Real Estate told voria.gr, “There are cases of owners of small stores who keep them closed in order to rent them after the Metro starts operating at a higher price.”
