21/06/2023
GREECE: THE BIRTH OF A NEW STAR
If you visited Greece, especially Athens and its suburbs, 2-3 years ago, then you should definitely come here again to see the renewal of this wonderful place and your perspective in Greece. Hellas has opened the doors of development to investors of all categories and just people who want to live in a democratic, loyal environment with the best climate and ecology of life.
More recently, Greece and skyscrapers seemed incompatible. Athens has never before been a city that could boast an abundance of high-rise buildings. Speaking of residential buildings, none of them in Greece exceeds the mark of 27 meters. The tallest building, the television tower, which is 103 meters high, looks tall against the backdrop of cozy green quarters filled with palm trees, orange and tangerine trees, figs and lemons. But now the face of the capital is changing, and it will noticeably grow up, acquiring its own super buildings. New development projects, unique for Athens, have started to work. One such project is being implemented on an area of 620 hectares with an investment package of 8 billion Euros with 5 skyscrapers, which include a hotel and a casino. The height of each building is at least 200 meters, the project implementation time is 3.5 years and the number of jobs provided by the project is about 80,000. The main investor is the “Mohegan Gaming and Entertainment” consortium, the design work was carried out by the architectural firm “Steelman Partners”.
The decision of large investors to invest in Greece is due to the objective economic platform. According to The Economist, in 2022 Greece has become the most economically successful country in the world. The published ranking of states was composed from economic indicators. 34 countries of the OECD (Organization for Economic Cooperation and Development) were assessed by criterias such as GDP, inflation, prices for consumer goods, success in the stock market, public debt. The ranking is led by Greece, as it has achieved great economic success (followed by: Spain, Japan, France, Italy, UK, USA, Germany and Estonia). The country's GDP for the year increased by 2.2%, and Greece also reduced its net public debt by 16% as a percentage of GDP. Thanks to progressive reforms and reliable investment legal system, as well as favorable investment climate, the inflow of foreign investment into the country is proceeding at a high speed. One of the most interesting markets for investors is the real estate market. Real estate in Greece has recently become incredibly popular - foreigners have become 67% more likely to buy it compared to last year. This is due to the fact that the purchase and rental prices of commercial and residential real estate, as well as land plots, are at the stage of intensive growth. In addition, it should be noted that foreign citizens in matters of buying and renting real estate are on an equal footing with the citizens of the Hellenic Republic, namely, they do not have to pay additional taxes and fees. Property rights in Greece are reliably protected by law for citizens of any country. Over the past 3 years, the face of Athens has changed significantly with renovated facades in the center and large-scale construction projects in the suburbs. The goals of investors are reselling real estate in the face of rising prices, construction and reconstruction of real estate, as well as leasing residential and commercial real estate of different price levels.
A striking indicator of real estate prices is always the capital. Of all the capitals of the EU countries, Athens and its suburbs still have the most affordable real estate. According to the research by the British insurance company CIA Landlord Insurance, it became known that the cheapest apartments, houses, commercial real estate and land plots in Europe are located in Athens. The average cost of one square meter starts from 2000 euros.
In second place on the list is Madrid (one m2 costs from 3000 Euros), in third place is Rome (one m2 costs from 3500 Euros), followed by London (one m2 costs from 4500 Euros) and Stockholm (one m2 costs from 6000 Euros) .
The National Bank of Greece cites the following figures: in 2022, foreigners bought real estate in Greece for only 1.5 billion Euros. This is 60% more than in the same period a year earlier. Moreover, this figure is even higher than in the pre-pandemic year 2019 (1.03 billion Euros).
The growth rate of prices for buying and renting real estate in Greece is impressive. If at the end of 2022 it was possible to buy a certain apartment in Athens for 100,000 Euros, then in the first quarter of 2023 the price of this apartment was at the level of 130,000 - 150,000 Euros (increased by 1.3 - 1.5 times). The cost of rent in 2023 also increased by an average of 30-50% compared to the last year in the face of constantly growing demand. Real estate becomes more expensive due to a 6-fold increase in the flow of tourists compared to 2022, a low tax burden, protection of investments and property rights, an influx of business and labor, a huge number of students (Higher education in Greece is prestigious, high-quality and free), the possibility of obtaining a resident card and subsequently citizenship of the Hellenic Republic through the purchase of real estate, as well as the modernization of existing real estate, the construction of a new one and investments in this industry through the implementation of large-scale projects.
