Greek real estate has become the latest target for overseas property investors, particularly led by the Chinese.
The Greek economy has now posted nine straight quarter on quarter growths between July and September 2018.
Furthermore, government figures show that consumer spending has been stronger than expected resulting in GDP increasing by 1 per cent in the third quarter. This compares to 0.4 per cent in the previous quarter with annual growth in the third quarter hitting 2.2 per cent. As a consequence, demand for Greek real estate is increasing.
The Greek golden visa program is proving popular with non-EU investors, whereby acquiring property with a minimum value of €250,000 can gain a residency permit that not only allows them to live in Greece but offers the opportunity to move within the greater EU area.
There is now a greater confidence in Greek real estate, and rental yields of 5-7 per cent can be achieved on short term Athens apartment leases which compares to the European average of 3 per cent.
When you also factor in the potential for capital growth, some experts predicting as high as 30 per cent over the next three years, it is no surprise to see overseas property investors targeting Greek real estate.
Real estate hedge funds have been extremely active amongst the Greek real estate market with many believing the sector and the Greek economy have bottomed out. Many people will not be aware, but Greece is no longer under economic bailout restrictions with these ending back in August. As a consequence, the Greek authorities will now have more flexibility as they look to stimulate further economic growth.
There are many factors coming together which indicate a positive short to medium term outlook for the Greek real estate market. The economy is recovering, tourist numbers are rising, and the Golden Visa program is seen as a very valuable bonus by many overseas investors.
While the ongoing recovery in both the economy and the real estate market should be considered in tandem with the overall European Union economy, the previously oversold position in Greece is slowly rebalancing.