Is real estate in Greece a good investment? This is a question that we get asked a lot, and the answer is yes! Greece is a beautiful country with so much to offer investors, from booming tourism to increasing real estate prices. Real estate in Greece is currently at an upward trend, however, it is still about 30% below pre-crisis levels – making it the best time to enter the market.
At the end of the pandemic, Greece opens up for the summer period of 2022, lifting covid-19 related restrictions just a couple of days before Orthodox Easter to welcome its visitors from all over the world along with foreign buyers who want to have a holiday and invest in one of the sunniest places of our world.
The real estate market in Greece – 2022
The real estate market in Greece is booming since 2021 and the prices remain on high levels especially in areas close to the sea and near organised villages or resorts.
According to data provided by the Bank of Greece, the largest part of foreign investment in Greece is dedicated to real estate – a fact that keeps pushing purchase and rental prices up.
In 2021 the net total foreign investment in Greece was €4,85 billion (2,7% GDP), from which €1,94 billion was directed to Greek real estate.
From 2017 to 2021 the total increase in apartment prices was 22,2%, which is still 29,1% lower that the pre-debt-crisis peak of 2008.
Who is buying and what?
The majority of the buyers are from Central Europe with an increase of buyers from the United States and Israel.
Here is a breakdown of foreign investment in Greece in 2021:
• Luxemburg: €918,8 million
• United Kingdom: €571,4 million
• Switzerland: €459,6 million
• United States of America: €413,3 million
• Germany: €412,6 million
• Cyprus: €318,0 million
• France: €228,6 million
• Hong Kong: €211,5 million
• Holland: €172,6 million
• Ireland: €108,8 million
• Spain: €86,9 million
• Italy: €80,9 million
What makes them want to have a property in the Greek islands is the climate, the crystal clear deep blue waters, the Mediterranean cuisine and the local culture, which includes people and their history.
The trend for the next 5 to 10 years for real estate in Greece will be mostly independent holiday homes with sea view and a swimming pool, for holidays use from its owners and often rented out when these are not occupied, making it an excellent opportunity for investment.
Due to the pandemic there is also a high demand for properties to be used for holidays as well as an office base at the same time.
Ways to invest in Greece Real Estate
There are many ways to invest in real estate in Greece, but one of the most popular ways is to purchase property for rental purposes. This can be a great way to generate a passive income, while benefiting from a strengthening market.
There are various options available for property management in Greece, so it’s possible to own real estate, generate an income and not actually be involved in the day to day maintenance and management.
Taxation
Rental income under the Greek Revenue Tax Code is independently taxed, and appropriate tax returns should be filed to the competent authority. Property income is taxed according to the following brackets:
– 15% on revenue up to €12,000
– 35% between €12,000 and €35,000
– 45% for annual rental income above €35,000.
The same rules apply for income gained through the use of digital platforms like Airbnb and Booking.com.
In addition, companies earning rental income are subject to corporate income tax which is currently 22%.
If you are planning on investing in Greece, make sure you have a local team on your side, dealing with all the additional expenses for purchasing and owning property in Greece.
Renovation VS Construction
Another option is to purchase real estate either for construction or renovation purposes. While this may seem like a more hands-on investment, there are complete design and project management services available – making it easier to manage while still offering the same financial rewards.
Renovation is a popular option as it can be less expensive than building from scratch, and you still have the potential to make a good profit if done correctly. There are also many properties in need of upgrades, making this an ideal investment opportunity. What’s more, land is limited on many of the islands, so finding prime real estate for construction can be an issue.
Construction is a good option if you can find the right piece of land. It can be more expensive than renovation, but you will have complete control over the property from the start. Looking at real estate on some of the bigger islands can offer opportunities for development as there will still be prime real estate available. Speak to your local real estate agent to explore your options.
Best areas for Real Estate investment in Greece
There are many great areas to invest in Greece real estate and one of the most popular areas is Crete. The island has had an increase in interest over the last few years, and real estate prices are still relatively low in comparison to some other areas.
Crete is also a very popular tourist destination, so there is always a high demand for rental properties. This makes it a great option for those looking to generate income from their investment.
It is also one of the largest islands in Greece, so there is plenty of land available for construction and development. This makes it one of the best Greece investment opportunities.
If you are thinking of investing in Greece real estate, then Crete is definitely worth considering.
Final Thoughts – Is real estate in Greece a good investment?
There is a lot of potential in the real estate market in Greece, and the prices are now at an all-time low. The past decade has been tough for the country, but there is light at the end of the tunnel, and everyone expects real estate to be one of the first industries to improve. The next 5 years are expected to be very successful for investors in Greece with a lot of start-ups and new hip areas reforming the map.
