All sources have been thoroughly verified for credibility. Furthermore, an industry specialist has reviewed and approved the final article.
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 offers, today, peace and stability to investors
Neutral
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.
You'll be glad to hear that Greece is seen as stable country for investors. The last Fragile State Index reported for this country is 55.8, which is a satisfactory number.
Greece is part of the European Union, which is a strong economic and political union that promotes peace and stability. Additionally, Greece has a strong economy and political system that has been in place for many years, providing a secure environment for investors.
There is a secure base for investment in the country. It's time to 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 2023, grow by 2.6%, which shows the country is on the right path. Concerning 2024, we're talking 1.5%.
On the longer term, the growth will still be there since Greece's economy is expected to increase by 8.1% during the next 5 years, resulting in an average GDP growth rate of 1.6%.
The projected moderate growth rate in Greece is still a good thing for someone who wants to invest in a property in this country because it indicates a steady, reliable increase in value over time, and it is less risky than investing in a country with a volatile or rapidly increasing growth rate.
That being said, there are other indicators to monitor.
Greek business owners are growing more confident in the economy
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 15 for Greece. It can be interpreted as "satisfactory", or "rather good".
If we look at the data, we can see that the trend is showing an upward progression: the BCI score, 12 months ago, registered at 8.
The fact that local businesses in Greece demonstrate confidence in the future is excellent news for property investors. It indicates that the economy is improving, which leads to more job opportunities and higher incomes. With this positive outlook, the demand for properties is expected to rise, providing investors with a great chance to earn rental income and potentially witness property values appreciate over time.
Make a profitable investment in Greece
Better information leads to better decisions. Save time and money. Download our guide.
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 2024.
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 2024.
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 2024.
Everything you need to know is included in our Greece Property Pack
In Greece, expect moderate 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 11.4%, which gives us an average yearly increase of 2.3%.
This data is suggesting that Greece could face inflation in the near future, which would lead to an increase in prices. Consequently, purchasing a property could become more expensive. However, if you buy now, there is a chance that your investment will appreciate, allowing you to sell it at a higher value in the future.
Is it a good time to buy real estate in Greece then?
Now it's time to draw our conclusions.
Without a doubt, 2024 presents a highly advantageous opportunity for property investment in Greece, supported by a robust set of indicators that far outweigh potential concerns. The projected growth of Greece's economy coupled with the growing confidence of Greek business owners in the economy create an ideal investment climate. The substantial increase in building permits being issued underscores the country's commitment to real estate development and innovation.
Additionally, the consistent appreciation of property values each quarter signifies a dynamic market with strong potential for value appreciation. This, paired with the increasing prosperity of Greece's population, indicates a potential demand for housing, potentially leading to long-term property value gains.
While some neutral aspects, such as peace and stability and moderate inflation, should be acknowledged, the overall positive signals form a compelling case for property investment. Furthermore, even though high rental yields might not be a prominent feature, the aggregate of favorable and neutral indicators aligns with a stable investment landscape.
In conclusion, the convergence of Greece's projected growth, increasing confidence, ample building permits, value appreciation, and growing prosperity makes 2024 an outstanding year for property investment. Despite neutral elements, the overall economic environment and potential for property value growth position Greece as an attractive destination for investors seeking stable and potentially rewarding real estate opportunities.
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.
-Is it a good time to buy a property in Albania?
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.
Buying real estate in Greece can be risky
An increasing number of foreign investors are showing interest in Greece. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.