The Greek property market is immensely attractive to foreign investors nowadays. Investments in real estate are the ones that will be bringing profit for a long time since the average investment term for an apartment in Athens is five years.
What the figures tell
At the end of the second quarter of 2019, the Greek property market saw a 6% rise in apartment prices compared to the end of the previous year. This rise was the fastest growth in the real estate market for more than ten years period. Nevertheless, despite the prominent increase of 2019, nowadays the prevailing rates are 36% lower than in 2008.
Contribution from Europe to Greece accounts for 70–80% of annual foreign real estate investment, as reported by Nordea. Foreigners that invest in Greece the most come from the Netherlands, Germany, France, Belgium, Italy, and Spain.
Greek real estate is in high demand
In Greece residential property is relatively affordable for the citizens. The analyses of the market show that a middle-class family can earn money to buy an apartment in Athens faster compared to other European capitals. The numbers show that it is cost-efficient for Greek residents to buy real estate in Athens. On average, if a person buys an apartment in the center of Athens and starts leasing it, this investment will return the cost of investment after 20 years. As for the apartment in the suburbs near the city, it will bring profit after approximately 24 years of leasing.
What affects the Greek property market the most, is tourism. Therefore, it is always more profitable to buy a property near tourist attractions or near the best beaches in the region. Consequently, leasing an apartment in Athens brings more money if the homeowner leases it for a short-time rent and during the holiday season then the prices for a residential property go up.
During the last five years, revenue from tourism in Greece increased by a third. Every year, under usual circumstances, the country welcomes more and more tourists. As a consequence, property prices in Greece and in Athens, in particular, have been growing by more than 9% every year.