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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