Greek Real Estate Market: The New Dawn
The Greek real estate market growth over the last years is a great indicator of the country’s financial recovery after the long-term crisis that Greece dealt with from 2009 and almost for a decade.
In this article, we’ll examine shortly the optimistic messages arising from the real estate market, by focusing mainly at the flourishing area of Athens ( Greece’s capital), as well as, the circumstances that make this overcome a reality.
The Real Estate Market’s Crisis & Recovery
In the previous years, as the Greek authorities were struggling with the huge goverment-dept crisis revealed in 2009, every field of the national economy was shrinking and one of the primary sectors that felt into this deadlock was the real estate market.
Taking into account the information provided by the Bank of Greece, house prices have fallen by almost 43% since the beginning of the financial crisis. It is also indicative that the residential real estate industry declined by 65% during this period (until 2015) when an upward trend was observed especially in the capital’s city center.
However, in recent years this situation has changed radically and all conditions seem to be fulfilled for this positive trend to continue.
The Reasons for This Positive Change & The benefits of Investing in Real Estate in Athens
Financial Recovery: Optimistic Predictions
According to Moody’s annual report of 2018 about real estate in Greece; it is predicted that the real estate’s prices will be increased continually for the next 12-18 months and in the same report it was noted that property prices rose by an average of 1.5% in 2018 for the first time in the last decade. More specifically, Miguel Lopez Patron, one of the report’s authors said:
«We predict that property prices will continue to rise softly over the next 12-18 months, a fact that will be great for Greek covered bonds, RMBS (Residential mortgage-backed securities) and credit institutes».
In the same context, the Bank of Greece provides us with an indicative chart of the changes in the house price index for the last year.
If the prediction of financial institutes like Moody’s and Bank of Greece giving us an optimistic view around the growth of the country’s real estate market; then the intelligence that we have for the capital depicting a flourishing future for the Athenian real estate industry in the near future.
The indexes as presented below create a sense of euphoria for the Greek government and real estate experts, as well as potential investors.
Tourism & Short-Tem Rentals
According to the Bank of Greece, revenues from the tourism industry increased by 14.12% to € 2.62Bn in July 2019 compared to the same period last year (€ 2.25Bn). To further emphasize this empowerment, it is important to mention that in July 2019 foreign tourist arrivals in Greece were estimated at around 38 million.
Also, the following table, which is extracted from the report of the Greek Statistical Service “Greece in Figures”, is a great indicator and a strong incentive for international investors looking for opportunities in Greece and especially in Athens, as it reveals the capital’s outlook and market share.
Another essential factor that is a great motivation for investors and individuals who are willing to invest in the Athenian real estate market is the sky-rocket of short-term leases. During the 2018 BnB Guests Conference in Athens, some very exciting measurements revealed around AirBnB’s infiltration into the Greek market. More specifically, there appear to be 4,847 active hosts in Athens, 35% of whom are referred to as “Superhosts” and 22% managing more than one lodgings.
The Unmatched Greek Golden Visa
Probably one of the most powerful incentives offered by the Greek government to international real estate investors is the golden visa program. Of course, Greece is not the only country that has initiated this service, but its value proposition is incomparable.
The Greek authorities allow every international investor to secure a golden visa not only for himself but also for his family members, including his parents, with the fulfillment of only condition, an investment of €250,000 in real estate.
Rival countries/markets such as Spain and Portugal, which are members of the European Union and also belong to the Mediterranean region, supply golden visas only to investors who spend € 500,000 on real estate.
Tourism & Short-Tem Rentals
Last but not least, the biggest competitive advantage of all, which in our minds must be more than enough for any real estate investor, is the History and Culture that echoes in every corner of Greek territory and especially in Athens, as well as, the relaxed and unique lifestyle that the capital offers to anyone who decides to live or invest in real estate storage.
As far as concern us at Divine Property, we are proud to be there for those who not only want to invest in real estate in Athens or elsewhere, but whoever wants to shape their dreamlike experience in Greece.