Published on 04 November 2005 at 10:03 am
Filed under: Europe:- Greece Property Guides » Greece Property Investment Overview
Property investment opportunities in Greece are broadly available countrywide and exist in the residential, commercial, retail and industrial property sectors.
The majority of overseas investment into the Greek real estate market is currently centered on the residential, second and holiday home markets however; but following on from Athens hosting the Olympics in 2004, investors are beginning to take more interest in residential and commercial opportunities in the major Greek cities as well.
Please Note: The future success of the Greek property sector from an investor’s point of view is likely to be heavily dependent on the country taking the necessary steps to restructure its economy effectively to minimise excessive bureaucratic disorganization and to fulfill obligations laid out under the EU’s Growth and Stability Pact.
The importance of these reforms cannot be emphasized strongly enough and an investor should bear them in mind when examining property investment opportunities in Greece.
An investor seeking diversification for his property portfolio could actually target Greece exclusively as the range of opportunity is expansive - although building an international real estate portfolio off the back of a single economy is unwise! The majority of investors currently look to Greece for income from the growing tourist sector and this is a realistic investment objective because despite ongoing problems with the Greek economy the tourism sector is well established and produces guaranteed returns.
As an alternative to individual jet to let based investments in Greece an investor could consider commercial opportunities in the form of mass tourist accommodation in hotels or holiday villages and entertainment or retail facilities. The government of Greece actually encourages all overseas investment into the further development of the tourism market and an investor should have confidence in this fact. Basically because tourism is incredibly important to Greece as it accounts for 15% of GDP, this sector is unlikely to suffer any negative interference from the Greek government which means that a property investor can be fairly well assured of the long term stability of any investments made in this sector.
Residential properties for sale in Greece along the coast and on the islands are more affordable than similar properties in Spain or France for example; this makes Greece a more affordable country for a real estate investor on a budget which is also a reason why Greece is growing in popularity with those seeking jet to let investments. As many countries worldwide have reached temporary ceilings with their property price rises, Greece remains an affordable haven and one that generates income and profits for those who buy well.
Leading up to the 2004 Olympic Games which were hosted in Athens, the city and surrounding areas received substantial aid and investment to improve and develop infrastructure and necessary facilities. This investment has subsequently resulted in the ‘Olympic Effect’ which sees property prices increasing quite substantially in the cities that are chosen to host the Olympics. Investors are targeting residential buy to let investments in Athens, furthermore they are targeting commercial ventures in Greece’s major towns and cities because EU investment is beginning to attract more companies to Greece creating increased demand for light industrial, office and retail space.
An investor should consider his investment objectives before examining the opportunities available in Greece. The majority of tourism based opportunities present satisfactory room for growth and development and certain city based ventures could also prove positive for profitability. However, it is worth bearing in mind Greece’s current economic strife and keeping an eye on internal developments made by the government towards domestic improvement of the Greek economy.
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