Greece in the top 5 countries with most expensive Airbnb prices this past year
In the past 12 months, Greece has joined the ranks of the top 5 Eastern European countries where prices for...
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In this day and age, with rising inflation and soaring consumer prices, it seems as if buying and investing in property might be a move that will ultimately cost more. But every country has a different story to tell, and while it might not be the right time to buy a new property in NYC or Tel Aviv, Greece could be the right move at this very moment. Investors seem to think so. Let’s explore what investors see in Greece.
The news constantly talks about inflation, rising interest rates, sky-high mortgage payments, and more and more expenses, seemingly with no end. Let’s try to block out the negative approach of the media and talk about the real situation in real estate. Maybe even find some positive angles to look at. They certainly exist – it’s only a matter of perspective.
When looking at metropolises all over the world, the economic circumstances didn’t really change what we already knew – buying property in global capitals such as London, Tel Aviv, New York, or Seoul was never an inexpensive expenditure. Looking outside of the overly-crowded, busy centers might be the right thing to do, dear investors. Let’s take a look at this megalopolis realness first.
Real Estate Reality – Israel
The most recent available data shows numbers that defy all expectations. Over the course of 2022, Israel’s housing market experienced a record-breaking 20.3 percent rise. The reality is quite harsh, as citizens are priced out of the real estate market, making it hard for investors to stick around and look for options.
Interestingly enough, Israel’s inflation rate stood at a steady 5.3 percent. Even though it exceeded the Bank of Israel’s upper target, it is still significantly lower than in the US and Europe. And yet the unreal high prices are becoming impossible to handle, suggesting that there could be a housing market bubble burst.
As the advertised prices are making our heads spin and properties becoming increasingly out of reach, investors are packing their bags and moving away to foreign countries to look for opportunities. But why is Greece their preferred destination? Let’s look at the numbers and the gorgeous properties to find out for ourselves.
Real Estate Opportunity: Greece
Greece was and still is a synonym for heavenly views, ancient landmarks, sandy beaches, and gorgeous properties. Undoubtedly, it’s been a tourist hot spot for decades. But what about investing in actual property in Greece? And with the current situation? There’s no doubt these are troubling times for the global economy, but nevertheless, there’s always a brighter side to consider.
First of all, rising prices ultimately lead to increased equity, adding to investor portfolios and to the overall ROI. Investors know this all too well. But what about Greece? The numbers speak for themselves. In particular, foreign real estate investments in Greece rose by 61 percent only in the first half of 2022. It’s safe to say the Greek real estate market is on the up-tick, in part thanks to foreign investors.
Here are some more numbers. Foreign investors made roughly 80 to 85 percent of real estate investments in Greece. And the number? Around €788 million. So what are these investors considering? There’s high demand for holiday accommodations, luxury properties, and vacation and retirement homes, which seems understandable, given the breathtaking sites, warm culture, good food, and deep history.
The next question is, who are these investors? Cyprus buyers led the investor cavalry and poured €466 million into Greek properties. Israeli buyers, on the other hand, invested €161 million, while German, Swiss, and British buyers also gave out hefty sums, helping to propel the Greek economy forward. Investors choosing Greece comes as no surprise, as property prices are moderate compared to the rest of the Mediterranean countries.
So, why should you follow the lead of many investors from around the world?
A Chance to Own a Piece of Heaven
If the numbers don’t speak for themselves, then it’s about time we looked at some solid facts. Greece does, in fact, have lower prices, despite the high inflation rates. In fact, the current rising prices are a testimony to a strengthening economy. Here’s some interesting information that might seem contradictory to what we know: in the past 10 years, the Greek housing market recorded a 22.5% decrease in house prices – the sharpest decline among 24 European Union members.
For example, property prices in Greece are more affordable than in Italy or Spain. Let’s not forget that the country practically bathes in sunshine 300 days a year, with breathtaking views and exquisite cultural heritage. Lastly, despite the huge interest, Greece has not turned into a real estate investment hot spot just yet, so it might be the right time to consider your options.
Finally, the results are in. Greece’s market is currently walking the once-in-a-lifetime tightrope of a still low yet rising market, providing a prime opportunity for investors from around the world to enter the market right now. Interested in becoming a property investor in Greece? Astrea is here to guide your journey.
