Eight reasons that make Greece very attractive for foreign investment
Foreign investment in Greek real estate is very attractive for several reasons, according to the managing director of Premier Realty Greece, Corina Saias.
As Saias notes, investing in Greek real estate offers a combination of affordable prices, high return potential, lifestyle advantages and strategic benefits. As the Greek economy recovers and tourism continues to develop, the Greek real estate market offers promising opportunities for personal and financial advancement, she adds, reports ANA-MPA.
Specifically, the eight reasons that make Greek properties attractive to investors are as follows:
1. Real estate growth potential
– Tourism boom: Greece attracts millions of visitors each year, increasing demand for rental properties in popular locations such as Athens, Mykonos, Santorini and Crete. Notably, tourist arrivals increased by 20.6% from January to May 2024 compared to the same period in 2023.
– Real estate recovery: The Greek real estate market has seen a steady increase in housing prices, building permits and rental prices since 2017. In 2023, there was a 13.41% increase on top of a 21% increase in prices from – to -. However, housing prices are still around 4% below the peak reached in the third quarter of 2008, according to BNP Paribas. In contrast, Eurostat data shows a decline in prices in at least eight European countries such as Luxembourg, Germany and Finland.
2. Competitive prices
– Affordable property prices: Despite strong growth, Greek real estate remains competitively priced, especially compared to Western Europe. In the high-end segment, areas such as Vouliagmeni, Pigadakia, Ellinikon, Voula, Kolonaki, Kavouri, Cyclades, Santorini and Crete have the highest prices per square meter. Conversely, regions such as Kastoria, Kardita, Follorina, Thessaly and Kozani have the cheapest prices per square meter.
– High-yield potential: Lower property prices, coupled with strong rental demand, can yield attractive rental returns ranging from 4% to 8.5%, depending on location and property type.
3. Golden Visa Program
– Residency benefits: Greece’s Golden Visa program offers residence permits to non-EU citizens who invest at least 400,000 euros in real estate, under new regulations starting from August 2024. For the Attica Region, the Regional Units of Thessaloniki, Mykonos and more than 30% of the island’s residents, Santorini, and Santorini, the minimum value of the real estate at the time of purchase is 800 euros. This program offers access to the Schengen Area and can be a path to EU citizenship.
4. Lifestyle and climate
– Mediterranean climate: Greece’s favorable Mediterranean climate makes it an attractive destination for both vacations and permanent residence.
– Quality of life: Greece offers a high quality of life with its beautiful landscapes, rich history, cultural heritage and relaxed lifestyle. The cost of living is relatively low compared to other European countries, and despite lower wages, the quality of life remains high.
5. Real estate market trends
– Growing demand: International investors from countries such as Cyprus, the US and Israel are increasingly interested in Greek real estate, attracted by low property prices, government reforms and potential capital gains. According to the Bank of Greece, the real estate sector absorbed over 40% of total foreign direct investment inflows, mainly due to the activity of funds and services within the Greek economy. In 2023, net foreign direct investment in real estate increased by 8% year-on-year to 2.13 billion euros.
– Infrastructure development: Ongoing infrastructure projects, including transportation improvements and urban development, are boosting property values. According to PWC, global infrastructure needs are projected to reach around $77 trillion by 2040, with Greece ranked 37th globally and 18th within the EU for infrastructure quality.
6. Various investment opportunities
– Variety of options: Greece offers a range of investment opportunities, from luxury villas and coastal properties to urban apartments and commercial real estate. Furthermore, Greece has significant potential in key sectors such as tourism, agriculture, maritime transport and renewable energy.
– Sustainability and real estate opportunities: There is an increasing availability of high-end properties, coupled with a growing interest in sustainable and environmentally friendly developments. The Greek government has launched several initiatives to promote green real estate.
7. Tax incentives
– Favorable tax regime: Greece has introduced tax incentives for real estate investors, including reduced property transfer taxes and potential tax benefits for renovation and development projects.
8. Strategic location
– Geographical advantage: Located at the crossroads of Europe, Asia and Africa, Greece offers strategic benefits for trade, travel and investment.