The Property Market in Greece is Developing

Greece is an interesting nation to consider when writing about property investment and buying homes abroad because whilst it is a hugely popular holiday destination, few foreign buyers ever buy second homes, retirement properties or even investment real estate in Greece.  The reasons for this include the fact that it is expensive to buy on the mainland and on the islands, it is far from a simple experience thanks to a lack of centralised land registry, and because the government has made it all but impossible for overseas buyers to enter the market in the past.

But ironically, when all around us international property markets are flagging as a result of a global ‘credit crunch’ and more specifically because of stagflation in the UK, the property market in Greece is developing.

We could speculate about why the Greek government is taking such huge steps in terms of easing access to its property market and making property investment in the nation so much easier and more attractive, but that would be a waste of time really.  What’s important to focus on is the very fact that the government has a stated plan to increase tourism by 2013 by some 50%, and that it is making a great deal of effort to kick start an attractive real estate environment but not at any cost.  This means that for investors there is potentially a growing base of tourism rental demand for any property purchased, and for all buyers, the fact that the government wants to maintain the appeal of Greece means that it should always be an attractive place to buy, giving any property owner some form of exit strategy should they wish to leave the market.

In the past developers were unwilling to enter the Greek market for a number of reasons but most specifically because they were limited to the construction density on a site they developed.  The limit was 2 – 5% of a plot could be developed…but nowadays in certain locations and in certain circumstances developers can construct housing on up to 20% of a plot.  Additional planning laws are being put through parliament at the moment to even make it easier for individuals to buy and build their own home in Greece too.  However, one point worth noting is that the Greek authorities will not allow a situation to develop such as the one that has evolved in Spain where up to 80% density is allowed, this is because they wish to preserve the environmental and natural integrity and beauty of their country.

Another factor that detracted buyer interest from Greece was the lack of a centralised land registry.  This can make it all but impossible to determine who has the legal right to sell a parcel of land or a home – but now there is a national project well underway to centralise all land transactions, and a centralised and accessible registry should be online by 2010.  And finally, the high cost in terms of fees and taxes involved in purchasing property in Greece is being looked at too.  There has already been an easing in terms of the complication of all the taxes involved – but buyers should still note that there is up to 19% VAT to add to new build prices and you can usually add on at least 10% in terms of additional transaction costs when buying property in Greece.

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.