As many parts of the world struggle with ways to manage uncertainty on various levels, Greece is attracting investors in property in growing numbers. Analysts have identified 6 compelling drivers of this trend:
Economic analysts Capital Economics have observed that Greece’s recovery from the pandemic has been remarkably quick. Even despite the uncertainty triggered by the war in Ukraine, Greece’s economy is forecast to grow by 5.5 percent in 2022. In terms of investment, the country is at a point where investment is already secure, but the short-term outlook for growth is still encouraging investors to seek opportunities in Greece.
Tourism has always been one of the cornerstones of Greece’s economy, and the country’s climate, history, culture, gastronomy and beautiful islands ensure that that is unlikely to change. In fact, revenue from tourism in 2022 is expected to surpass the pre-pandemic levels of 2019. The influx of tourists, however, goes hand-in-hand with the demand for holiday accommodation. Here the pandemic has led to a shift in preference, as visitors have discovered the many advantages of short-term holiday rentals which grant more flexibility, more freedom, more space, and better value. To capitalize on this trend, investors are keen to identify properties in locations that will appeal to holidaymakers, in order to benefit from the high returns associated with short-term rentals. Especially at a time when money in the bank is eroding, investing in property has far greater potential.
As foreign buyers continue to feed the demand for property in the most attractive locations both in the main cities and on the Greek Islands, the market is expected to remain healthy with reasonable levels of growth. Giorgos Gavriilidis, CEO of Elxis, a real estate consultancy and property law firm specializing in holiday homes, expects prices to rise by around 10% in 2022. The latest figures released by the Bank of Greece showed an increase of 9.1% in the prices of apartments in Q4 2021, while the average for the whole year reached 7.1%.
Despite the latest increases, property prices in Greece are still significantly lower than in other EU countries. Buyers seeking a second home in the sun see Greece as a very tempting alternative to such countries as Spain and Italy, which are historically the preferred destinations for a sunny escape. According to Elxis, Dutch, German and Belgian buyers in particular have given Greece and the Greek property market a clear thumbs-up. Key infrastructure projects are also being quoted as a contributor to the growing interest.
The Greek Islands have always been among the preferred summer holiday destinations, thanks to their sandy beaches, diverse natural landscape, and the hospitality of their people. The most popular islands continue to be the big names such as Mykonos, Santorini, and Paros, though there is a growing preference for quieter and more isolated islands as well. Somewhere in between lies Crete, which offers the best of both worlds: sufficient action to satisfy the active holidaymakers, but also plenty of opportunity to retreat and relax in tranquil locations, making it a steady choice among a broad market segment.
Last but not least, Greece offers investors an exceptional opportunity to combine their acquisition of property with permanent residence in Greece for themselves, their spouses, children, parents and parents-in-law. As a member of the European Unions and the Schengen Zone, Greece is among the most desirable destinations for alternative residency, which grants residence permit holders the right to travel freely across Europe and the Schengen Zone. Greece’s residency by investment scheme is particularly straightforward and can be extended indefinitely.
To find out more about the property market in Greece and the latest details regarding the country’s residency by investment scheme, contact us via email info@velment.com
