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Why real estate in Greece is in very high demand today

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"Why real estate in Greece is in very high demand today. Foreign buyers are looking for holiday homes and retirement homes in Greece," the prestigious German newspaper Handelsblatt reports in an article published recently

 

Real estate in Greece is currently very popular

"The Greek real estate market is developing very dynamically.  80 to 85 percent of luxury holiday property purchases are made by foreigners, and of these, the majority come from German-speaking countries, namely Germany, Austria and Switzerland"", say real estate market players.

Thanks to huge investments in infrastructure, even remote areas are now easily accessible. Fraport has been managing 14 Greek regional airports for five years and has thoroughly modernised previously neglected airports. 5G mobile telephony has been installed in almost all tourist areas and along the main transport axes, while the expansion of the fibre-optic network is also proceeding apace - important for 'digital nomads' looking for an office in the sun.

According to the Hellenic Central Bank, foreign investment in the Greek real estate market increased by 61% to €788 million in the first half of the year. Market observers expect €1.7 billion to flow into the Greek property market from abroad this year. This will surpass the previous record of 1.45 billion set in 2019.

Prices in Greece are still quite moderate compared to other Mediterranean destinations and, as such, offer buyers good entry-level property options.

 

Germans are mainly looking for detached houses in Greece

"German buyers are mainly looking for detached houses, ideally with sea views and a garden," says Marios Christodoulou, managing director of Ferimmo.de, the only German online platform that exclusively markets Greek properties. The Berlin-based company works with about 200 real estate agents in Greece and has more than 40,000 properties in Greece. "German clients are looking for homes with at least two bedrooms and an average of 120 square meters," Christodoulou said. "For this you need to invest 250,000 to 450,000 euros."

 

Financing the purchase of real estate by German citizens is now possible

For financing, FERIMMO is cooperating with EUROBANK, one of the four systemic banks in Greece.   Thus, for the first time, German citizens can finance the purchase of property in Greece with a mortgage loan. Until now, this was impossible for non-residents.  Loan applications can be submitted very simply via a link or email on the FERIMMO platform.

However, residential properties in Greece are not only in demand as holiday homes and retirement homes. The relatively modest prices compared to other Mediterranean countries also make the properties interesting as capital investments. "Yields of around five per cent are realistic, and in tourist hotspots you can achieve much more," says Christodoulou.

For example, rental income can amount to €144,000 a year for a 250-square-metre residence on the famous island of Mykonos with a purchase price of €1.94 million and a twelve-week rental period.   This results in a gross yield of 7.4 percent.  On the island of Paros, a property of the same size yields 7.1 per cent and on Santorini 6.3 per cent.  In Crete, a favourite island of the Germans, average yields are 4.6 to 4.8 per cent.

 

Conditions for buying property in Greece are particularly favourable at the moment

But if you're thinking of buying, you'd better not delay too long. Because tax conditions are currently favorable. By the end of 2024, the tax authorities will waive the 24% VAT that should be paid on the purchase of new properties. The buyer pays only 3% land transfer tax.  Including estate agent's commission, lawyer's fees, notary's fees and land registry fees, incidental purchase costs amount to between seven and 8.5% of the purchase price.

 

Read the original article from Handelsblatt 👉 here