Investing in Real Estate in Greece In 2020
Posted on: 23 February 2020 by Amy Smith Brown
The real estate market in Greece is currently seeing a lot of investments, and this has been the case for more than a year now.
There are several reasons why this is the case, but one reason that stands out the country’s economic recovery. Ever since Greece go its economy back on track and paid off its debts, things began to look up for the coastal country once again.
The real estate market is not at its peak as it once was more than a decade ago or before the economic downturn, but it is looking quite encouraging. Investment experts are saying the right things about Greece’s property market and the projections are the sort of things that real estate investors are looking out for. The numbers are also fantastic at the moment, and the country is set to continue in the upward trend.
Investing in real estate in Greece was once an extremely profitable business before the economic crisis – the opportunities were up for grabs by anyone going into the construction of supermalls and high rises, or those who purchase beach houses and properties on islands across the countries coast. There are indications that the market is approaching that peak once again, however, the market is still favourable to those who are buying to rent and not to sell. If you are buying a property to resell in Greece, your best option may be to buy for the long term, as the reselling market is yet to catch up.
Another reason why investing in Greece in 2020 is the country's tourism is to experience a boom. The numbers of visitors in the country spiked last year – to property investors, this is big news. This also explains why buying property for a hospitality business is thriving. Tourists need a place to stay where they can enjoy the view and take amazing pictures with the sunset - Greece is packed with such properties.
As Greece continues to experience an upward trend in its economic indices, with a steady GDP growth since 2015 which is expected to hit higher than 2.2% in 2020, there will continue to be an influx of investment in the real estate market. And this is one of the reasons why investing in real estate in 20020 is a smart move.
According to Chris Papachristophorou, Founder and managing partner at Invel, “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 with Chris by suggesting that “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 not natural holders of real estate. Our strategy is to try to buy from those holders."
The government is also playing a huge role in encouraging real estate investors by reducing property tax and introducing other incentives.
If you planning to invest in real estate in Greece in 2020 and you need an experienced law firm to help you make all the necessary arrangements, then you should visit oikonomakislaw.com. This law firm has a team of experienced lawyers who are dedicated to helping investors set up their businesses, as well as navigate the corporate laws of Greece.