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Special report on the Greek real estate market by BELLEVUE

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Special report on the Greek real estate market by BELLEVUE, the largest real estate magazine in Germany and Europe

GREECE: Some very positive and surprising news are coming from the former problem child of the EU. 

Tourists are swarming the country and its real estate market is flourishing.

Greece and the Greek real estate market prove to be irresistible for Germans, a fact particularly stressed by the German press, with an extensive special report published by “BELLEVUE”, the largest real estate magazine in Germany and Europe. In its recent August issue, German magazine BELLEVUE praises the investment opportunities and capacities offered by Greece in real estate.

The special report's main points are the following:

BELLEVUE

Eight years have passed since the last German Minister of Finance visited Greece. Although Wolfgang Schäuble came to the country in 2014 as a strict supervisor of the reforms and austerity packages, Christian Lindner, the new Minister of Finance, was very impressed in June 2022: “The Greek government has made great effort. (...) These efforts are particularly appreciated and earn our respect”. Praise was given to the government of Kyriakos Mitsotakis, who assumed duties in 2019 and skillfully led his country through the pandemic, allowing Greece to announce financial growth of over seven percent. Piraeus Bank expects an annual growth between 3 and 5% for the next five years.

Of course, this does not mean that all is well in the Mediterranean country. Greece continues having the highest public debt in the EU and an almost 13% unemployment rate, while natural disasters, such as the large wildfires of 2018 and 2021, continue afflicting the country. The years of recession have made their mark in the real estate market. Between 2010 and 2018, property values were reduced almost in half. Political decisions supported the real estate sector, with programs strengthening the economy and tax relief measures. The most important achievement was the largest project of urban development in Europe, the conversion of the former Athens airport in Elliniko. With an investment of approximately eight billion Euro, in a 6.2 square kilometers plot, hotels, apartments, malls, offices, recreation premises and the Greek capital's largest park are being constructed.

The pandemic as a support aid

Although the pandemic has proven to be disastrous for tourism in many countries, in February 2022, the German Reporters Network *(Redaktionsnetzwerk Deutschland - RND) described Greece as “the pandemic winner”. In the summer of 2021, the number of tourists arriving in Greece was almost identical to that of 2019, reaching 86%. Throughout Europe, this percentage was much lower, at 40 percent. Last July and August, the popular vacation islands of Mykonos and Santorini welcomed even more tourists than before the pandemic.  Travel company TUI expects more than three million vacationers from Germany this summer.

High demand for real estate

Strong tourist interest brings along a respectively high number of property buyers.  Some vacationers fall in love with the country and decide to purchase a second residence.  Particularly since 2020, more and more “digital nomads” have been organizing their workplace in a manner that allows them to work all around the world, using a WiFi connection. The third group also showing dynamic increase are investors wishing to protect their assets from inflation and gain high yields. The high yields of Greek real estate make a purchase in Greece a particularly attractive investment.  Indicatively cited are Mykonos, with a yield between 5%-10% and Paros with 4%-7%.

Marios Christodoulou, CEO of FERIMMO, the only German real estate platform exclusively promoting Greek real estate in all German-speaking countries, states that searches originating from Germany in the Ferimmo platform were increased by 70 percent between 2021 and 2022.

With over 40,000 properties throughout Greece and in cooperation with over 200 Greek real estate agencies, the Berlin-based company offers the greatest variety of real estate for German buyers.

Cyclades instead of Balearic Islands

Although prices are continuously rising and are now approximately 30 percent higher than the 2018 levels, Greece remains relatively cheap in comparison to other European vacation destinations. German customers are now seeking properties in the Greek islands instead of Spain, for example, in Crete, Corfu, Mykonos or Santorini and other continental areas.

Insider Tip Peloponnese

In the province of Messinia, at the southwestern segment of the peninsula, prices continue being lower than in other popular tourist areas in Greece. With its small gulfs and its hilly landscape, the area is reminiscent of Tuscany and its visitors are increasing. The most important landmark of the area, which is well-connected with an airport, is the Costa Navarino resort. An immense tourist project, with its own gulf, golf courses, luxurious hotels and villas, which can be purchased with guaranteed yield of 4% for capital investment and own use.

Read the whole special report in German here