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Greece that we love

 

Greece is one of the most beautiful countries in the world. You can see the history in every step that you take. There are more than 6,000 islands and islets scattered in the Aegean and Ionian Seas. The coastlines, among the longest in the world, extend for almost 16.000km. There are countless beautiful beaches with crystal clear waters. There are more than 300 larger or smaller mountains characterized by their diversity, rare scenery and unique forests. The Greeks are friendly, warm and welcoming. The traditional Mediterranean cuisine is delicious, based around a variety of colorful and flavorful foods that are high in nutrients and low in animal fats. Greek music is so famous around the world that tourists may arrive just for an evening to listen popular artists. 

The Greek Real Estate Market today

 

·          Since the third quarter of 2008, the overall price of real estate in Greece has fallen by an average of 40%. Prices for luxury properties have dropped on average by 50% since 2009. Apartment prices fell by 5.6% in the second quarter of 2015. (FORBES/Investing Oct 19, 2015)

 

               

Source: Bank of Greece                                                                                                                                                                                                                                            * Provisional data

 

·         Real estate prices in Greece have greatly decreased during the past 8 years and they are at the 50%-60% of the pre-crisis values. One can argue that prices may or may not have hit rock bottom yet, but who can say where rock bottom is. It will certainly take years for a full recovery, but it is reasonably fair to say that the overall direction will rather be up than down in the next 5-10 years.

 

·         The forecast for - Greece House Price Index - as predicted on Tuesday, February 23, 2016. (http://www.tradingeconomics.com)

Forecast

Actual

Q1/16

Q2/16

Q3/16

Q4/16

2020

Unit

Housing Index

59.8

58.66

57.37

57.79

57.19

68.47

Index Points

 

 

 

 

 

The Greek Rentals Market

 

 

Source: Bank of Greece

 

·         Due to the harsh economic situation in the country, people who cannot afford to buy a home anymore have turned to rentals. Although there has been a decline in rental prices, rents have stabilized and pre-tax annual returns on properties are now in the 7-10% range.

 

The Greek tourist market

 

Source: SETE                                                                                                            * Estimate

 

·           Tourism is Greece’s heaviest industry. The numbers of tourist arrivals keep rising. The first wave of bookings for summer vacations in Greece during 2016 has created expectations that the national tourism industry will grow again this year. The Greek Capital is among Trivago’s most popular cities for 2016.

 

 

·           Short term rentals have been on the rise. In a 2014 Airbnb survey, the platform is attracting new visitors to Athens, with 71 percent of guests visiting for the first time and 67 percent reporting that they were more likely to return. The platform has 11,500 entries for Greece, 2,500 of which are for Athens, a figure that has doubled since 2009. (http://www.gtp.gr)