General information
The Greek housing market traditionally was serving as the growth locomotive of the Greek economy.
Due to a long-lasting economic crisis, this market has suffered the last years a significant slowdown. Since 2008 the number of housing transactions fell by 72%, while house prices fell by 41%, especially in the urban centers.
The oversupply lies at the center of the real estate crisis in Greece, which is the result of systematic investments in the sector
Indicatively, from 2002-2007, the housing constructions were rising at a rate of 1.5% per annum (reaching 800k new buildings), while from 2008-2014 the increase in new builds contributed to the real estate crisis, blocking the way out of it, despite having decreased at a slow rate, by 0.1% p.a. (reaching 264k)
The oversupply of houses is difficult to be absorbed, especially in a period of decreasing disposable income, limited mortgage lending and unemployment at a level of about 24%.
Opportunities
On the other hand, oversupply, economic crisis and need of liquidity, brings to the surface attractive opportunities for investors coming from abroad, especially for luxury properties in interesting places and expensive areas. After all a property purchase is a long term investment and prices are now very appealing.
Residency permit
To revive the housing market, the Greek government recently offered residence to non-EU investors purchasing property worth over €250,000. The residence plan is similar to measures adopted by Hungary, Spain and Portugal. The plan is valid for five years and is open to renewal.
Rental returns
In the center of Athens, gross rental yields on apartments are moderate, at around 4.2% for apartments of 120 square meters. In the suburbs of Athens is about 4.5%. Smaller apartments will earn proportionately more.
Properties are reasonably easy to let. Athens is a large city with traffic problems, and many people need to rent. Greece has a thriving Airbnb letting scene.
Gross rental yield is the rent the landlord will earn – before taxation, vacancy costs, and other costs – compared to the purchase price of the property.
