Cyriacus Xydis Identifies Greece as a Prime Spot for Real Estate Investment

The European real estate market is thriving, with Greece emerging as a key destination for investors. Cyriacus Xydis, Managing Partner at Berkshire Hathaway HomeServices Athens Properties, highlights the appeal of the Greek market, driven by programs like the Golden Visa and Digital Nomad Visa, which facilitate residency and investment opportunities.

According to the 'European Summer Report 2024' by Berkshire Hathaway HomeServices, Greece ranks among the top destinations for real estate investment, alongside Italy, Portugal, Spain, and the UK. These countries offer a high quality of life and attractive investment opportunities, drawing buyers from across the globe.

Why this matters: The growth of the Greek real estate market has significant implications for the country's economy and international investors. As property prices continue to rise, it may lead to increased investment opportunities, but also pose challenges for local buyers and the overall housing market.

The Greek real estate market has seen a remarkable surge, with property prices increasing by 12% in 2022 and 13% in 2023. Xydis notes that this growth is fueled by the demand for high-quality properties and rentals. 'The Greek real estate market was undervalued for many years, but in the last three to four years, it has become a pole of attraction for investors, which has pushed prices up,' he says.

Buyers from countries such as Israel, Turkey, Bulgaria, the UK, France, and the Netherlands are particularly interested in Greek properties, with proximity to the sea being a significant criterion. Xydis highlights that whether it's a popular island or a region of mainland Greece, buyers prioritize being close to the beach and the sea.

The preference for low-maintenance properties, such as apartments and villas, is evident among investors. The Greek islands remain a sought-after destination, with luxurious rental apartments in Athens offering a more affordable alternative to four-star hotels. 'Renting a luxurious apartment for vacations in Athens is still significantly more affordable compared to a four-star hotel,' Xydis points out.

The tourist season in Athens spans ten months, with only January and February being quieter periods. This extended season contributes to the high occupancy rates of rental properties, making them an attractive investment option.

However, the sharp increase in property prices is affecting demand. The Bank of Greece reports a 66% rise in house prices nationwide from 2017 to 2024, with Attica seeing an 85% increase. This surge has made it challenging for aspiring homeowners to find affordable properties, despite meeting mortgage requirements.

Market sources indicate that the rapid spike in sales prices, rather than mortgage interest rates, is the primary obstacle for buyers. This has led to a decrease in transactions, as many are unable to afford the rising costs.

Looking ahead, changes to the Golden Visa program are expected in September 2024, which will increase the minimum investment required for residency in Greece. This development could further influence the dynamics of the Greek real estate market.

Greece's real estate market is experiencing significant growth, attracting international investors and driving up property prices. With programs like the Golden Visa and a long tourist season, the market remains robust, though the rising costs pose challenges for some buyers.

Key Takeaways

• Greece is a top destination for real estate investment, driven by programs like Golden Visa and Digital Nomad Visa.
• Property prices in Greece rose 12% in 2022 and 13% in 2023, fueled by demand for high-quality properties and rentals.
• Buyers prioritize proximity to the sea, with apartments and villas being popular low-maintenance options.
• The tourist season in Athens spans 10 months, making rental properties an attractive investment option.
• Rising property prices are affecting demand, making it challenging for aspiring homeowners to find affordable properties.