Considering the Greek economy is still at a low ebb, you’re probably asking yourself why invest in Greece? The question you should be asking is WHY NOT invest in Greece? Timing is everything in the real estate market. In Greece, particularly the urban areas we believe the market is RIPE! Below are some reasons why investing in the Greek real estate market makes sense..
An Economy on the Rebound – the only way is up!
Some simple facts about the Greek economy, which will illustrate to you an economy on the up.
- According to Trading Economist Greece’s GDP will grow 1.2% per annum on average up to 2020
- According to the IMF, unemployment in Greece declined from a record 27.5% in 2013 to 21.5% in 2017, and it expects this figure to further decline to 18.8% by 2020. The unemployment figure has been the lowest since 2011
- Athens being by far the most popular tourist destination in Greece has delivered triple digit growth in tourists visiting the city since 2012. 1.5 times more than the second most popular destination being Herikalion, Crete. – Figures provided by SETE
- Foreign investment in property has already begun. The revival can be seen in the Athens Hotel market. In the past two years large Hotel chains like Wyndham and Aman have invested in Athens and opened new hotels. In June 2017, Hines purchased one of the city’s most famous buildings – Athens Ledra, with the scope of upgrading and operating.
Investors who want to ride the growth of this market are advised to start acting NOW.
Distressed Property/Capital Valuations – time to pick up a bargain
- Since 2008 the number of housing transactions fell by 72%, while house prices fell by 41%, especially in the urban centers
- The Greek housing market currently is an “outlier” of the European markets, displaying a 30% decline in house prices within 2010-2015. While house prices in Spain and Italy seem to have adjusted to the economic conditions, in Greece they have become slightly cheaper to the disposable income.
- The Greek housing market has suffered a significant slowdown; between 2008 and 2015 €18bn., or 8.2% of GDP, investments in construction were lost within 2008-2015, slowing further down the economic activity
The Holiday Home – ties back to the homeland
What’s not to love! Greece has endless options to offer for holidaying, not only in the summer but all year round. The sun, the beaches, the warm climate, the great food , cultural arts and hospitality are only a few reasons that make Greece a perfect destination for everyone to own a holiday get-away. Last but not least, there is that special something many feel when in Greece, especially those of distant Greek descent. We hear all the time clients stressing the importance of owning a home in Greece, a home that can offer a sense of belonging, a special bond to their roots and heritage.
Retirement Home – Lifestyle
Greece holds a high place on foreigner’s list as a retirement destination and there’s a reason for that. In fact, according to The Telegraph, Greece ranks 10th among the best place to retire in the world. Greece can be ideal for foreigners, especially for those with nest egg put set aside and or for those who can secure a steady income from abroad. Aside from the obvious reasons mentioned above, the cost of living, the safe environment and the affordable private healthcare in Greece makes it an enticing place for people to consider when retiring.
Taxation – Being Smart
There can be many advantages in having your assets split amongst several countries. We can put you in touch with our taxation specialists in Greece to give you specific advice and also consult your local accountant for international tax agreements³.
- As far as Geopolitics is concerned, Greece is a strategic element in the western Eurozone plans and as such figures greatly in the overall EU plans of cohesion
- Greece’s strategic location in the Mediterranean is a bonus for foreign investors. Their dominant strategic place amongst, The Balkans, Turkey and Middle East makes it very tempting for investing
- Greece is the epicenter of the Mediterranean climate. With longer summer days than winter days and winters being consistently mild, Greece is a great place to live or visit.
- Apart from the wonderful warm waters, the thousand hospitable islands to visit in both Aegean and Ionian seas, Greece’s location in Europe makes it a smart place to be based. With flights to the furthest place in Europe only being a maximum of 3 hours away