Grecian Golden Opportunity

Greece's resilient real estate market makes it the ideal investment destination. George Banns discovers how its robust growth, competitive prices and strategic advantages continue to attract international investors

Greece continues to shine as a prime investment destination for those seeking value for money and reliable returns. The latest data from the Bank of Greece reveals a substantial increase in apartment prices, with a year-on-year growth of 14.5% in the first quarter of 2023. This follows a trend of consistent growth, with apartment prices rising by an average annual rate of 11.7% in 2022 and 7.6% in 2021.

Highlighting the growing potential, a recent survey by consultancy Deloitte ranks Athens among the top 10 most attractive European cities for hotel investments in 2023. Furthermore, the confidence in Greece's real estate market is evident, as the UAE sovereign wealth fund has recently invested in one of the country's most promising real estate-related startups.

The prospects for Greece's property market remain bright, thanks to several key factors. The Greek market offers excellent value, bolstered by the enduring strength of the Greek tourism brand. Opportunities span various asset classes, from residential housing to commercial property, logistics facilities, and luxury hotels and resorts. Additionally, Greece's attractive climate and quality of life make it an appealing choice for foreign buyers.

Compared to other Mediterranean markets, Greek real estate prices are highly competitive, offering attractive yields. Despite steady price increases in recent years, housing prices are still below their peak from 15 years ago, before the financial crisis caused a decline of more than 40% in residential prices.

The remarkable recovery of Greek tourism in the aftermath of COVID-19 has further instilled confidence in investors who continued to invest in Greek hospitality throughout the pandemic. Investment in the luxury segment of the market remains robust, attracting investors from Spain, Singapore, and beyond.

In addition to the flourishing tourism sector, Greece's overall growth momentum is generating significant interest in commercial real estate. The country's enviable geostrategic location and well- developed transportation infrastructure make it an attractive choice for investors eyeing office spaces and logistics facilities. In 2022, investments in commercial real estate in Greece reached a record-breaking 1.65 billion euros, representing a remarkable 40% increase compared to the previous year. These numbers are even more impressive considering the slowdown in European markets during the same period.

Greece's natural beauty, mild climate, and quality of life have captivated an increasing number of holiday and second home buyers. This trend is expected to continue growing in the years ahead. Current tax incentives have played a significant role in attracting individuals, including high net worth individuals, retirees, and digital nomads, to Greece. The country's resilient real estate market adds further allure, positioning Greece as a safe place to invest.

With its vibrant real estate market, competitive prices, strategic advantages, and favourable investment climate, Greece remains an ideal destination for investors seeking both long-term stability and attractive returns. As the country's economic growth continues to surge, Greece stands out as a compelling investment opportunity for both local and international investors.