Pros and Cons of Property Investment in Greece

Despite the fact that Greece is often in the top three destinations for British holidaymakers, it has a wide choice of locations to consider for property investment purposes and it’s a country at a different point in the market cycle compared to Spain for example and it therefore continues to offer medium to long term potential, Greece is often overlooked by those seeking overseas investment property opportunities.

So, we thought we’d focus on highlighting both the pros and cons of property investment in Greece for you in case you’re seeking a new opportunity and so that you can make your own mind up about whether Greece does actually represent a good market for you to explore as part of your investment portfolio expansion.

The Pros of Investing in Greek Property

On the political and economic front Greece has a lot in its favour…for a start it is a political democracy within the EU and it is currently enjoying modest economic growth.  The nation is working to reduce both its higher than EU average unemployment issues and to reform and restructure economically speaking through, among other things, the privatisation of several state owned enterprises and the potential adoption of a flat income tax rate.

Greece has a very strong, reputable and internationally recognised tourism market, it enjoys cheap flight accessibility, it has fantastic weather as well as a long tourism season, additionally it has many established tourism resorts built around stunning beaches and natural scenery meaning that those seeking jet to let holiday investment property opportunities have an incredibly broad choice of location to consider.

Greece does not suffer from high crime, it has relatively good infrastructure with a great deal of investment having recently gone into improving the infrastructure particularly in Athens, foreign direct investment is encouraged, EU nationals are not restricted when it comes to buying and letting property in Greece and what’s more, while the property tourism market opportunity is well established and understood, emerging prospects are presenting themselves in the form of city based letting or renovation opportunities and commercial property potential as well.

The Cons of Property Investment in Greece

The one main issue with committing to Greece for property investment returns is the cost…it is expensive to buy property in Greece with the related taxes and transaction costs adding up to 20% on top of the purchase price.  As an investor you have to ensure that the purchase price coupled with the transaction costs and ongoing costs of ownership still leave room for profitability in the form of yields from rental income or capital gains from an increase in the underlying value of your real estate.

Additionally Greece has issues with falling international interest in the form of investment commitment, a rigid and inflexible labour market, aforementioned high unemployment levels and stiff property investment attraction competition from the likes of Turkey and Morocco.

So, if you’re looking for a market with incredibly well established tourism market potential or a nation with emerging opportunities presenting themselves currently then Greece could be well worth your consideration.  But remember to understand and factor in transaction costs and recognise the fact that we are entering an uncertain period for global property market potential meaning that any current commitments may have to be held for the longer term to achieve a decent ROI for the investor.

Special Reports: Property News for Greece

Greece Property Buying Process
Buying investment property in Greece is usually a straightforward process however it is necessary to have a lawyer to assist

Greece Property Investment Overview
Most property investors targeting Greece focus on the tourism sector but city based commercial property investments are growing in popularity

Greece: The Property Investor’s Guide
Immense real estate opportunities and choice abound for property investors in mainland Greece and on the Greek islands.