Foreign Investment Floods Into Greek Real Estate

Foreign real estate investment in Greece has been booming since 2018, the reasons being many and far from exhaustive. According to Mr. Benjamin, founder of Mon-Investissement-En-Grece.com (My investment in Greece, Greek-Invest.com), a Franco-Greek company that assists foreign clients wishing to invest in Greece, “In addition to the fact that since 2018, some areas of Athens have gained 20% in latent capital gains, we have also seen rental investment easily yielding between 7% and 12% in net annual return. Finally, Greece is a market that is rebuilding, where the highest prices of 2021 are the super deals of 2023.”
Mon Investissement En Grece has been a fixture in the Greek property investment market since 2015 but until 2019 they were working exclusively with Russian, Chinese and Lebanese clients. “It’s worth remembering that Greece offers the cheapest Golden Visa in Europe. For €250,000, you can buy a property with a 10% return, and you leave with a Schengen Visa for your whole family. Since Brexit, the British have become our biggest clients,” explains Benjamin.
In addition to upgrading their ratings, S&P and Moody’s explain in their 2019 and 2020 reports that “Greece is on the cusp of a new real estate era. Not only is the implementation of the land registry reassuring investors, but the fact that the market is being boosted by low taxes and old real estate in need of renovation are harbingers of a revival.”
According to Mr. Benjamin, “Between 2008 and 2017, property lost up to 80% of its value in some areas. Between 2018 and 2020, prices skyrocketed, and this during the pandemic while short-term rental properties were all converted to long-term. In 2021 and 2022, you will still be able to find properties at $1,100/sqm, but it is becoming more and more rare. And these properties were $700/sqm two years ago.”
What is more, according to the National Bank of Greece, “The buy/renovate/resell market is booming. It is common in 2020 to make a 50% or 100% capital gain on a property bought and renovated 18/24 months ago.”
The main reason why it is widely recommended to use specialist agencies such as Mon Investissement En Grece to buy a property in Greece is to make the whole process easier to manage. “Lawyers, notaries, translations, signatures, works, bank account, we are here to take care of everything – and we do it in your language – if you’re American, we’ll get you a lawyer from the New York and Athens bars. If you’re French, we have all the contracts translated into the language of Molière, so that you can understand every word of the contract you sign,” adds Mr. Benjamin.
And the government is now considering the introduction of new incentives for foreign investors.
In addition to the Golden Visa program, several other measures introduced by Prime Minister Kyriakos Mitsotakis have recently supported the housing market, such as the suspension of VAT payments on new building permits and the reduction of the single property tax (ENFIA).
In short, in 2021 our bank accounts have never looked so healthy, and it’s definitely the perfect year to acquire your first rental investment in Greece.
Source: Greek-Invest.com