Greece is a beautiful place.The mountains, the islands, the incredible scenery make the Hellenic country a great vacation destination.But what about owning real estate?Is now the right time to invest in property in Greece?
Today, investing in property for sale in Greece has not been widely spoken about due to their current economic status as well as their outlook towards next years forecast.With incomes falling and banks closing, it has been difficult to access capital or financing for investments.This, however, does create a unique opportunity for out of country investors.
Let’s look into this in more detail:
Greece Housing Market
Currently there are around 250,000 properties for sale and according to some websites and a Real estate blog named Realigro that number is only going to grow due to the economic crisis.Many investment homes are not generating any income because some owners are afraid to rent out of fear of not being paid.The market is beginning to return to growth, however it has been a very difficult and slow process.To try and help revive this market and speed up growth the government has offered residence to non European investors purchasing or renting property that is valued over $250,000.They are keeping this open for five years and they will have the ability for renewal.There are some positives in areas of Greece.While house prices have fallen around 42% over the last decade, house prices are beginning to rise in Athens and Thessaloniki.
Greece Economic Status
In 2018, the Greek economy grew by 2% which was an improvement from the previous year and the highest growth since 2007.Some say this growth will continue and possibly even increase through 2019.This is mainly due to the correct framework of policy that is now in place.Greece remaining in the Euro is a major factor contributing to this as well.There have been substantial reforms to the labor market and public spending.The financial industry is getting stronger as well with deposits coming at a higher rate. Unemployment was down by over 1% in 2018 and inflation was flat.These are all positive signs that lead people to believe that the Greek economy is getting back on track and out of the long recession.
So Is Now The Time?
Investing in properties in Greece is definitely not an easy thing right now.However, there are signs that for the right investor, things could be ripe for the taking.Residential construction is on the rise after many years of declining.Interests rates are remain low with potential to even decrease slightly.This combination, along with the residence offered by the government that was mentioned above, creates this unique opportunity for investors to to find a lot of value in some properties in Greece.Some of the best places to find that value could be Kos, Zakynthos, and Santorini.There could be more open opportunities there than a place like Athens which is much more congested and bit more chaotic for potential investors.