Greece:

Property Investment Profile

should you invest in greece?

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Should You Invest?

Greece is known for being in the top three holiday destinations for British holiday makers. Foreign investment on buying and letting property is permitted from all nationals that are a part of the EU with no restrictions.

  • Greece is considered to be the best value for money in the Mediterranean.
  • The cost of living is 30%-40% below the UK.
  • Apparent property price rises are predicted in Athens due to a popular buy-to-let property market.
  • There has been increased investment from the EU for improvements in infrastructure and unemployment levels.
  • Greece holds over 300 days of sun a year averaging out at eight and a half hours a day with a short mild winter season.
  • Over the last ten years demand for retirement and holiday homes has increased dramatically.
  • The government is lifting restrictions with better air access and increased available mortgage finance which is making Greece increasingly more popular.
  • Crete is one of the most popular islands in Greece and a good place to invest for short term returns.

Rental Yields

The main factor keeping the property market flowing in Greece is the tourist industry and the demand for holiday homes. Property near and around the coastal areas are usually only rented out on a short term basis to tourists and yields during the peak season of June to September can rise from 5%- 30%.

location
type of
property
size
(m2)
average
price
to buy
(€)
cost per
m2 to buy
(€)
average
price
to rent
(€)
cost per
m2 to rent
(€)
yield
(%)
Athens            
  50 80,000 1,600 400 8 6.00%
  80 150,000 1,875 700 8.8 5.60%
  120 220,000 1,833 1,000 8.3 5.45%
  200 280,000 1,400 1,600 8 6.86%
Athens-
Suburbs
           
  80 120,000 1,500 600 7.5 6.00%
+ garden 120 180,000 1,500 900 7.5 6.00%
+ garden 250 330,000 1,320 1,800 7.2 6.55%
Main Islands-
Seaside Properties
           
  50 80,000 1,600 400 8 6.00%
  80 150,000 1,875 680 8.5 5.44%
  150 280,000 1,867 1,200 8 5.14%
  200 350,000 1,750 1,700 8.5 5.83%
Crete-
Villas & Houses
           
+ pool 70 143,290 2,047 - - -
+ pool 100 229,100 2,291 - - -
+ pool 130 285,480 2,196 - - -
+ pool 170 332,180 1,954 - - -
+ pool 200 453,400 2,267 - - -
+ pool 250 648,250 2,593 - - -

Source: Global Property Guide

Price History

Since 1999 prices in Greece have risen steadily. Increases between 12% and 15% were recorded in 2006 with the popular island areas seeing the highest returns. For example, in Corfu and Crete rises of 40% for sought after coastal properties were not uncommon.

The price you pay for a property will depend on several factors including views, location and accessibility, availability of utilities and permission for building.

Athens has also seen good growth with rises of 12% per year on average. Apartments in the city start at around €80,000 for plots measuring around 50 sq m but large properties in more central locations will cost around €250,000. Popular suburbs can be bought into from around €120,000 rising to around €400,000 for attractive villas in good areas.

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