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Everything you need to know is included in our Greece Property Pack
Are you thinking of investing in property in the land of Ancient Civilization? Are you thinking about when would be a suitable time to make a move?
When it comes to market timing, there are varying opinions. The Greek real estate agent you know may suggest that it's currently a good time to buy property, but your childhood friend living in Athens suggests waiting for a couple more months.
At Investropa, when we create articles or update our pack of documents related to the real estate market in Greece, we use verifiable facts and concrete data, not just subjective opinions.
We have thoroughly examined all the official reports and statistics available on government websites. Now, we have a comprehensive database of reliable information and we can help you determining whether it is currently advantageous to purchase real estate in Greece.
We hope you find this article insightful!
How is the property market in Greece now?
Greece is widely recognized, today, as a stable country
Positive
If you want to invest in real estate, prioritize stability as it reduces risks and provides security. It is an information you need as a foreigner buying a property in Greece.
Yes, Greece is a country with a stable environment. The last Fragile State Index reported for this country is 54.7, which is a highly satisfactory number.
Greece is widely recognized as a stable country today due to its successful economic recovery following the severe debt crisis of the 2010s, marked by structural reforms, fiscal consolidation, and a return to economic growth. Additionally, its strategic geopolitical position in the Eastern Mediterranean and membership in the European Union and NATO contribute to its political stability and security.
Investing in this country rests on solid ground. Next, let's analyze the economic forecast.
Greece will keep growing
Positive
Before buying real estate, assess the country's economic strength.
As projected by the IMF, Greece will, in 2024, grow by 2%, which shows the country is on the right path. Regarding 2025, we're talking 1.9%.
On the longer term, the growth will still be there since Greece's economy is expected to increase by 8.2% during the next 5 years, resulting in an average GDP growth rate of 1.6%.
A moderate growth rate in Greece suggests a stable and gradually improving economy, which can lead to steady property value appreciation over time. This stability reduces investment risk and offers potential for long-term gains, making it an attractive option for property investors.
That being said, there are other indicators to monitor.
Greek business owners are more and more enthusiastic about the economic outlook
Positive
How do Greeks perceive their economy? Relying solely on the GDP forecast may not provide an accurate assessment. Luckily, in Greece there is a standardized metric that is regularly published. We're lucky because this isn't true for every country.
The Business Consumer Index (BCI) is derived from surveys and assessments of business leaders, indicating their confidence in the current and future economic conditions.
Based on The Global Economy's findings, the Business Confidence Index is currently at 21 for Greece. For interpretation, this score is remarkably robust.
If we look at the data, we can see that we're on a positive trend, moving upward. The BCI score has increased, 12 months ago it was at 12.
The strong level of the Business Confidence Index in Greece is excellent news for property investors. It signifies a robust economy, which translates into more job opportunities and higher incomes. With this optimistic outlook, the demand for properties is anticipated to increase, offering investors a promising opportunity to earn rental income and potentially see property values appreciate over time.
Greece is delivering a lot more building permits
Positive
The number of permits issued for construction projects is a useful indicator to consider when deciding if it's a good time to buy property in a country. An uptick in the issuance of building permits suggests a positive sentiment in the property market.
We have excellent news for you: the number of building permits delivered is exploding in Greece.
In the period of the last 12 months, according to National Statistical Service of Greece, the number of building permits issued by the Greek municipalities rose by 13.2%, from 23,870 to 27,030 units.
The data here strongly suggests that many people think it's a good time to invest in real estate.
Another important point to note is that there will be an increase in the number of real estate available in the market. Based on this information, it's possible that property prices will decrease in Greece in 2025.
Each quarter, Greek properties are gaining value
Positive
Greece's home prices have increased by 41.3% in 5 years according to Bank of Greece.
It means that if you had bought a traditional house in Santorini for $750,000 five years ago, then it would now be worth around $1,060,000.
During these 5 years, property prices have been consistently rising with each passing quarter.
It's definitely a green flag for whoever wants to invest in the Greek property market. However, some investors may opt to wait for a potential market correction in order to secure more favorable prices for their investment.
You can find a more detailed analysis of the real estate prices in our property pack for Greece.
Everything you need to know is included in our Greece Property Pack
Greece's population is getting richer
Positive
When you're looking to buy real estate, population growth and GDP per capita deserve careful consideration because:
- a growing population means more people needing homes
- a higher GDP per person means people have more money to spend on housing (which can lead to increased property value over time)
In Greece, the average GDP per capita has changed by 8.2% over the last 5 years. It's a satisfactory number.
This means that, if you purchase a villa with a view of the Aegean Sea and rent it out, you will find that each year, you'll attract more tenants with sufficient funds to cover the rent.
If you're considering purchasing and renting it out, this trend is a good thing. Then, the rental demand might increase in places like Athens, Thessaloniki, or even in the Greek Islands in 2025.
No high rental yields in Greece
Neutral
Rental yield is a common factor to consider when analyzing real estate investment opportunities.
It's the annual rental income of a property divided by its price. For example, if a Greek property is purchased for €250,000 and generates €12,000 in annual rental income, the rental yield would be 4.8%
Based on the data provided by Numbeo, rental properties in Greece promise gross rental yields from 2.7% and 5.4%. You can find a more detailed analysis (by property and areas) in our pack of documents related to the real estate market in Greece.
It indicates a moderate level of income generation.
Moreover, as we have seen before, there might be a fall in property prices (due to an increase in supply) and more wealthy tenants. Consequently, gross rental yields will probably climb in Greece in 2025.
Everything you need to know is included in our Greece Property Pack
In Greece, expect minimal inflationary effect
Neutral
Inflation is the persistent devaluation of money.
It's when your iconic Greek salad at a local taverna costs 12 euros instead of 10 euros a couple of years ago.
If you're about to invest in a property, high inflation can benefit you:
- property values tend to increase over time, leading to potential capital appreciation
- inflation can result in higher rental rates, increasing cash flow from the property
- inflation reduces the real value of debt, making mortgage payments more affordable
- real estate can act as a hedge against inflation, preserving the value of the investment
- diversifying into real estate provides stability during inflationary periods
- tax advantages, like depreciation deductions, can help offset the impact of inflation
Based on the IMF's outlook, over the next 5 years, Greece will have an inflation rate of 1.0%, which gives us an average yearly increase of 0.2%.
This data is suggesting that Greece is anticipated to experience negligible inflation. Unfortunately, in the absence of inflation, purchasing a property now may not result in substantial price increases or substantial profits in the future.
Is it a good time to buy real estate in Greece then?
Now it's time to draw our conclusions.
2025 is shaping up to be an excellent time to invest in property in Greece, and there are several compelling reasons for this. First and foremost, Greece is currently recognized as a stable country, which is a crucial factor for any investment decision. Stability in a nation often translates to a more predictable and secure environment for property investments, reducing the risks associated with political or economic upheaval. This stability is a solid foundation for anyone looking to invest in real estate, as it suggests that the market is less likely to experience sudden downturns.
Looking at the economic forecast, Greece's economy is expected to grow by 8.2% over the next five years, averaging a GDP growth rate of 1.6% annually. This moderate growth rate indicates a stable and gradually improving economy, which is beneficial for property investors. A steadily growing economy often leads to an increase in property values over time, providing investors with the potential for long-term gains. This makes Greece an attractive option for those looking to invest in real estate, as the risk is lower and the potential for appreciation is promising.
Moreover, Greece is issuing more building permits, which is a positive sign for the property market. An increase in building permits suggests that there is a demand for new properties, which can drive up property values. Additionally, Greek properties are gaining value each quarter, indicating a healthy and active real estate market. As the population in Greece becomes wealthier, the demand for quality housing is likely to increase, further supporting property value appreciation.
For those interested in rental properties, Greece offers promising returns. According to data from Numbeo, rental properties in Greece can yield gross rental returns ranging from 2.7% to 5.4%. This is an attractive prospect for investors looking to generate income from their property investments. Furthermore, Greece is expected to experience minimal inflationary effects, which means that the purchasing power of rental income is likely to remain stable. All these factors combined make 2025 a potentially lucrative time to buy property in Greece.
We genuinely hope this article was useful!. If you need to know more, you can check our our pack of documents related to the real estate market in Greece.
-Will real estate prices go up in Greece?
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.