The Greek economy has noticeably stabilized in recent years and with it, the Greek real estate market as well.
Through drastic domestic policies, the development of the tourism sector, as well as the regulation of property taxes in Greece, the government has managed to steadily bring the country out of the crisis.
With 2023 finally here, let’s explore the biggest Greek Real Estate predictions of the year!
Athens leads the Greek Real Estate Market
During the third quarter of 2022, the Bank of Greece released numerous data on the property market. These records are what guide us in making informed decisions in the real estate game.
The data have shown that the annual rate of change in apartment prices for the entire country stood at 11.2%. Growth rates were 10.2% in the second quarter of 2022.
Greece in general offers a big variety of properties for sale, commercial spaces, and apartments for rent. Athens, however, combines a vast and multifaceted spectrum of property types. While the city beautifully combines traditional villas, and old apartments, at the same time, the new and shiny developments blend almost seamlessly into the skyline of the city.
Whereas there has been growth in the property market overall, there are noticeable differences in the growth rates for different properties. According to studies, the growth rate for old apartments was at 10.5%, while newer developments saw a growth rate of 12.2% during the last few months of 2022.
However, differences in growth rates weren’t just seen in property type, but in location too.
In the third quarter of 2022, Athens saw the biggest year-on-year growth rate in apartment prices. For Athens, it was 13%; and for Thessaloniki, the second-biggest city in Greece, 11.1%.
Undoubtedly, Athens will continue to lead the Greek real estate market well into 2023.
Bank Of Greece (2022) Press releases, Indices of residential property prices: Q3 2022. Bank Of Greece. Available at: https://www.bankofgreece.gr/en/news-and-media/press-office/news-list/news?announcement=ad19de3e-f8ac-4b5e-8d3e-e3038fc31f21 (Accessed: January 16, 2023).
Greek Economy Growing
Greece’s economy is expected to keep growing this year reinforcing the country’s positive momentum.
“The Greek economy is showing remarkable resilience, flexibility, and dynamism, despite uncertainty due to the recurring waves of the pandemic, but also to the new challenges,“ said governor Mr. Stournaras.
Among the areas seen performing well this year is Greece’s property sector. Investor sentiment in housing from foreign and local buyers remains strong, keeping demand robust for houses for sale on the Greek islands and the mainland.
Specifically, the 2023 budget foresees a 40% increase in state receipts from real estate transfers. Revenues will reach 489 million euros against the €350 million estimated to be generated this year.
Although the course of the economy is strong, in 2023, the Greek economy is expected to expand at a rate of 1-2 percent, versus a pace of some 6 percent this year.
Golden Visa 2.0
According to a 2021 Ernst & Young investment report, Greece is now among the most attractive investment destinations in Europe.
“Greece ranks — for the first time — among the 10 most attractive destinations for foreign investment, with 10 percent of respondents mentioning Greece among the three most attractive countries for 2021.”
Part of this is due to the Golden Visa Program. The Golden Visa program was launched in 2013 to revive the housing market. It offers residency to non-EU investors purchasing a property that falls into the requirements of the program.
The plan is valid for five years and is open to renewal. Since its inception in November 2021, 28,411 residence permits have been given under the Golden Visa program.
However, according to recent news, during his recent speech at the Thessaloniki International Fair, Mitsotakis gave scarce details on the Government’s Golden Visa changes. From now on the Golden Visa’s minimum eligible property investment threshold will increase from €250,000 to €500,000 in select areas.
The reasoning behind the policy change is to maintain financial stability within the housing market for Greeks, stating: “To increase the affordability of real estate for Greeks, we are now increasing the minimum amount of investment required for the issuance of a Golden Visa from €250,000 to €500,000.“
New Opportunities for Young Greeks
Greece’s seven-year housing boom has left many young people in the same position. Priced out of the property market and forced to cover the cost of soaring rents despite the little rise in their real incomes.
A surge in borrowing costs after the European Central Bank raised interest rates by two percentage points over three meetings has only added to the problem.
That may soon change, however, after the Greek government unveiled a €1.75bn affordable housing package. This significant step will put homeownership within the grasp of thousands of young Greeks by offering ultra-cheap loans to fund property purchases.
As borrowing costs soar across Europe, Greece is the latest country to offer relief to its people who are currently struggling to get — or stay — on the property ladder.
Starting early in 2023, banks will provide €500mn worth of mortgages at a quarter of the market rate. About 10,000 low-income people aged 25 to 39 will benefit from interest-free loans from the government.
“This package will not only give the opportunity to young people to become homeowners but also provide an incentive to upgrade an aging real estate market,” said Karavias.
Looking Ahead
In light of the latest policies, Greece has once again become a reliable haven for both investors and locals alike.
While Athens might lead the Real Estate market, you can find plenty of opportunities around the country that can offer you equally high yields. Due to the landscape diversity of Greece, numerous housing and commercial alternatives can be found, from small village houses to high-end business hubs.
In the meantime, as the economy is taking steps forward, the leaders of the country are optimizing the Golden Visa criteria. According to reports, as Greece is taking its place amongst the top 10 most attractive destinations in the world, the Golden Visa’s minimum eligible property investment threshold will double.
This increase will help locals enter the real estate game by purchasing their first investment while creating housing plans that will push them a step closer to becoming homeowners.
When considering investing in the Greek property market in 2023, you should have experts by your side, who will advise you, guide you, research, and review properties with you.
Getting into the real estate industry, whether it is for investing or making your first purchase, you need to have the top experts and an elite agency.
You need CENTURY 21 Greece. Contact us today and let’s navigate the industry the RIGHT way.
