Why should investors bet on the Greek real estate market in 2024

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The Greek real estate market, which experienced a significant decline during the crisis years, is now showing signs of recovery and enticing both domestic and international investors.

While investment activity is expected to moderately increase or remain unchanged in most real estate sectors in the rest of Europe and the Middle East in 2024.

According to the records of the Bank of Greece, foreign direct investments exceeded 7.2 billion euros in the past year. Greece has successfully climbed the ranks of popular investment destinations, aiming to make a mark on the global investment map.

One of the main reasons investors choose Greece is the relatively low real estate prices compared to other European countries, particularly in coastal areas and islands. In August 2023, the average price per sq.m. in Athens was 2,876 euros, while in Paris it was 10,200 euros, in Berlin it was 5,100 euros, and in Rome it was 4,900 euros.

Furthermore, the Greek real estate market is expected to continue growing in the coming years due to economic recovery, increased tourism, and government incentives. House prices in urban areas rose by 12% year-on-year, with significant growth in major cities like Athens and Thessaloniki.

According to the European Commission, Greece's GDP growth was 5.9% in 2022 and is estimated to be 2.4% in 2023. Inflation decreased from 9.65% in 2022 to 4.3% in 2023 (3.03% decrease in December). These factors indicate that the Greek real estate market will remain resilient and profitable in the near future.

The Greek government has also implemented various measures to attract foreign investors and stimulate the real estate sector. These include a three-year suspension of VAT on property purchases, saving up to 24% of the property value, and a reduction in the property transfer tax from 3.09% to 0.5%. These measures significantly reduce the cost of buying real estate in Greece and increase the potential return on investment.

Another advantage of investing in Greek real estate is the Golden Visa Program, which is one of the most attractive and reasonably priced programs in Europe. Despite the impact on domestic markets, it remains popular and continues to attract applicants.

Additionally, investing in Greek real estate can benefit from the thriving tourism industry, which can generate significant capital gains for property owners. Greece welcomed nearly 30 million international visitors in 2022, generating revenues of €18 billion.

Data from the Bank of Greece shows a significant increase of 17% in inbound travel traffic from January to October 2023 compared to the previous year. Investors can buy properties in Greece and rent them to tourists, earning a stable income.

For instance, luxury properties in Greece can earn an estimated income of 780 euros per night during the summer season. Properties in competitive markets like Turkey can reach rental prices of 480 euros per night, while luxury holiday homes in Spain rent for €438 a night, and in Italy, short-term rentals drop further to €364 a night.

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