Investing in Real Estate in Greece
Greece is a popular country for many obvious reasons. It is a coastal nation that is rich in culture, history, beautiful landscapes, safety, beautiful beaches, and many more. It is for these reasons that the EU member country is a growing investment hub for entrepreneurs and real estate investors. When you put its geographical location into consideration, it becomes clearer why investors have their eyes on this coastal country.
Investing in real estate in Greece is considered a profitable business venture, whether you are investing in the construction of high rises and super malls, or purchasing beachfront homes, or properties on the numerous islands on the country’s coast.
A great example of a real estate investment is in the hospitality industry. Greece is a popular tourist destination, so it makes perfect sense to invest in hospitality. For instance, the profitability of investing in resort real estate is guaranteed for many years, while enjoying significant benefits based on the pricing dynamics of the property.
Almost a decade after Greece suffered a series of economic setbacks which required a series of bailout funding from the EU and IMF, the country is back on the menu for real estate investors.
Greece saw about 446 million Euros worth of investment in commercial real estate in the first quarter of 2019 – higher than previously recorded volumes for each of the past four years.
As Greece’s economy continues to recover, more investment in the real estate sector will continue to pour in. The country has recorded a steady GDP growth since 2015 and is expected to hit higher than 2.2% in 2020. The country has also successfully exited its last bailout in 2018.
Founder and managing partner at Invel, Chris Papachristophorou, suggests that Greece “is probably one of the very few real estate markets where you can see growth from both rent improvement and tightening yields,” Vlaho Kojakovic, head of property and tourism at the European Bank of Reconstruction and Development agrees “The outlook is positive with new investments, refurbishments and upgrades occurring in several cities,”
“The economic recovery, coupled with structural reforms, is expected to attract more foreign investors,” Kojakovic adds. “In this context, EBRD aims to continue supporting the resurgence of the real estate sector.”
Another reliable way of investing in the real estate industry in Greece is by approaching the banks. They usually have a lot of assets that they are trying to let go of. “There’s still a lot of real estate in the form of NPLs, or in the form of assets on the balance sheets of banks,” says Francisco Milone, head of European real estate at alternative investment firm Värde Partners. He adds “Banks are obviously not natural holders of real estate. Our strategy is to try to buy from those holders.”
Investing in real estate in Greece should be seen as a long-term play as opposed to short-term investment. If you are looking to invest in real estate in Greece and you need a law firm that is experienced in helping foreign investors settle in Greece and make sense of the entire process including government regulations, policies on real estate and legal advice, you should visit oikonomakislaw.com.