There is a race for Greece’s property market by investors from across the globe. Statistics show that real estate transactions are growing by 25% compared to previous years.
Most of these property transactions are by investors from Europe, Russia, China, and America, and others, accounting for more than 20% of all property deals in the country. Visit rrcorfurealestate.com if you are looking to explore real estate opportunities in Greece.
Investors from Europe
According to figures from Statista, properties in Greece are selling several times cheaper than most countries in the EU. The data revealed properties in Greece are 1.5 times cheaper than in Portugal, Spain, Germany, three times cheaper than in Italy, 4 times cheaper than in France and Austria and 7 times cheaper than in the UK.
Western European investors have their eyes on the property market in Athens, seeing it as an investment opportunity with the potential to yield profit both long-term and short-term. According to the Bank of Greece, property prices were about 42% lower than before the economic crisis, even though there is an increase in property deals in Greece. Many property and financial experts have predicted an increase in the cost per square meter over the next five years.
Investors from China
According to China Merchants Bank, more than 32% of wealthy Chinese nationals are looking for property investment opportunities abroad as part of their plans to emigrate to Europe and America. The Golden Visa was launched in 2013 to attract investors who purchase properties in Greece from 250,000 Euros. Such investors will be eligible for a residence permit. The permit will be issued to applicants and their family including children, parents, and spouse, which may be renewed every five years. More than 2,000 Chinese investors took advantage of the Golden Visa and have been issued residence permits.
Investors from Russia
The Central Bank of Russia revealed that, in Q1-Q3 2017, overseas payment for properties overseas by Russian investors increased by 25% compared to the same period in 2016, growing from $621M to $775M. There has also been significant growth in the number of Russian Investors.
A sizeable number of these Russian investors target luxury properties. Analysts believe that the reason for these investments in luxury properties in Greece is because the prices of these properties have fallen by up to 50% since the recessions. Also, Russians are forced to invest in foreign assets due to the instability in Russia.
One of the most sought after locations by Russian investors is the Athens Riviera, which refers to the Southern suburbs of Athens – Glyfada, Vouliagmeni, Varkiza, Faliro and Voula, located 30 minutes from the city centre.
Investors from the United States
Greece has caught the attention of US authorities due to tensions with Turkey, and they are looking to form new partnerships in the region.
“I am convinced that 2020 could be a turning point for the Greek economy, but that depends on creating the right investment conditions”, US ambassador to Greece Geoffrey Pyatt, said to the Greek Reporter news portal.
American investors are partly responsible for the rapid growth of tourism in Greece. According to WTTC, tourism contributed to 18.6% of Greek GDP in 2016, and that figure is expected to grow to 22.4% by 2026. In turn, the growth in tourism is stimulating an increase in demand for services. Mr Pyatt adds “Obviously things are happening in the hotel sector. I had a good conversation with Marriot when I was in New York, which is expanding its footprint here. Wyndham hotels also are expanding their presence in Greece”.