2017 and 2018 were years of recovery for residential real estate in Greece, and residential properties are the top choice for most investors. Since the Greek economic crisis, residential property prices in recent years have fallen by nearly 40% from their peak, leading many investors to seize the opportunity to invest at this time. So, is the Greek real estate market suitable for investment in 2019?
Benefiting from Greece's beautiful natural environment, the country has vigorously developed its tourism industry, welcoming 33 million global tourists in 2018. This has provided a substantial customer base for short-term rentals, prompting many investors to invest in Greek real estate and collect rent!
According to forecasts by the authoritative institution TradingEconomics regarding the 2018 Greek property price index, the housing price index in Greece is expected to maintain a continuous upward trend.
Comparing this with the actual growth data of the housing price index in the first half of 2018, it is clear that the actual property price index for 2018 was higher than forecasted and also maintained a continuous upward trend.
According to data from the Bank of Greece, the retail property price index in Greece in the first half of 2018 increased by 3.1% compared to the same period in 2017, with the Athens region rising by 4.9%, higher than other regions in Greece.
Greek real estate appraisers have assessed the development trend of the Greek property market for 2019: property prices in prime investment areas in Greece will be higher in 2019, and entry-level investment properties will become increasingly scarce, as housing prices are rising across the country...
As Greek properties become more expensive and scarcer, the time to invest in Greece is now!
How to Choose Greek Real Estate
With the steady recovery of the Greek economy, more and more investors are interested in joining the ranks of those investing in Greek real estate, and how to select suitable properties has become the most urgent question for investors.
We have analyzed the distribution and regional characteristics of Greek real estate for your reference:
City Center: Many schools, high rental rates
The city center of Greece belongs to the old town area, located in a bustling commercial district with very convenient transportation facilities.
Due to the numerous prestigious schools in the Greek city center, such as the National and Kapodistrian University of Athens, the National Technical University of Athens, and the Athens University of Economics and Business, the area is rich in educational resources, attracting both locals and overseas individuals to live and reside here. Naturally, the property rental rate is quite high, with an average annual rental yield of 3-5%. In addition, the processing speed for immigration in the central region is currently the fastest among several areas.
Southwest Region: Emerging affluent area, higher prices, newer properties
Properties in the southwest region of Greece range from small to large units, distributed from north to south. Most properties in this area are villa-style, featuring avant-garde designs, distinct characteristics, and expansive views and sea vistas. Like the city center, the living facilities in the southwest region are quite sound, and all transportation facilities are efficient and convenient.
The southern part of Greece is an emerging affluent area where many Athenian celebrities or wealthy families reside. The well-known British international school in Athens, St. Lawrence College, is located here.
Whether you are looking for a primary residence or an asset investment, this area is an excellent choice. However, precisely because of this, the number of immigration applications in this area is currently the highest, so the speed of immigration processing is relatively slower compared to other regions.
Northeast Region: Traditional affluent area, a gathering place for celebrities
The northeast region of Greece is a traditional affluent area. This area is surrounded by embassies, and the regional greenery and overall atmosphere are excellent. It is home to many prestigious schools and international schools, making it the preferred area for many parents considering their children's future. Due to its unique geographical location, properties in this area have a strong sense of architectural design and good privacy.
In addition to conventional property types, Greece also has some properties located on the islands of Santorini and Crete. Properties in these areas are mainly townhouses and detached villas, and the prices are much more expensive than those in the city center of Athens.
For investors solely looking to obtain immigration status, properties in this area are not suitable. For high-net-worth individuals who want to invest in tourism real estate, properties on the islands can be considered.
When applying for Greek residency by investment and selecting Greek properties, investors can combine their own needs with the characteristics of the different Greek regions mentioned above to ultimately choose their ideal property.