Greek Real Estate
Investing in Greek real estate can be a smart move. In fact, according to Trading Economics, the average property price in Greece is a whopping 22% higher than its pre-crisis levels. This is despite the country’s continued economic woes and its difficulty in recovering from the 2008 crisis. This has prompted investors from all over the world to make their fortunes in the Greek real estate market.
As the economy recovers, Greek Real Estate prices are also on the rise. This is largely due to the cheap mortgage loans that have been issued to locals over the past few months. The government has also cut personal taxes and corporate income tax. These measures have been particularly effective at stimulating demand for housing.
The best way to buy a new home in Greece is through a developer. These firms offer a wide range of services. For instance, they can guarantee rental returns of 10% per annum, while they can also provide passive income through management of the property. They have a good track record and can handle expensive assets. They can also help you shortlist properties that will suit your needs.
Is it Worth Investing in Greek Real Estate Now?
Aside from the standard VAT rate, a buyer of a new build flat will also have to pay 24% of the cadastral value. The good news is that the VAT will be abolished for transactions involving the sale of newly built properties from 2020 to 22. This will help kickstart the greenfield development market.
Another big thing to know about buying real estate in Greece is that there are not a lot of proposals for long-term rentals. Usually, properties are rented to students, foreign specialists or other short-term tenants. The rental rates for these properties are low, but they are still on the rise. However, they are not as active as they used to be. The state also indefinitely freezes construction sites if artifacts are found on site.
It is not unusual for new buildings to have self-opening doors, spiral stairs, and other features that can save a lot of space. However, you should bear in mind that most Greece properties need renovations. For instance, some offers need repair for EUR500-1,000/m2. The real estate industry in Greece is one of the most competitive in Europe. There are many transactions that happen privately to avoid costs, but you can advertise your property or get it listed on an online marketplace.
The best way to buy a property in Greece is to sign a contract, which will be transferred to you once the deal is completed. In order to speed up the process, you can get a tax number and have it registered with the Land Registry. The cost of getting the tax number can vary depending on the transaction, but it is a logical start. Having a tax number also speeds up the eviction process.
Lastly, while you are thinking about real estate in Greece, you should consider the island of Crete. This is a popular destination for holidays and is a promising investment location. In particular, the property market on the island of Santorini is thriving even as the pandemic continues.