Why Greek Real Estate is a Success Story?

The recent announcement that Athens has secured the 5th spot in the global housing market, marking an impressive 12% annual rise in prices for 2023, according to Knight Frank’s latest research among 107 major cities worldwide, is a testament to Greece’s enduring appeal and evolving economic landscape.

This remarkable achievement is not merely a statistical triumph; it mirrors the dynamic transformation that Athens has experienced in recent years. The Greek capital, once known primarily for its historical significance, is now being transformed to a contemporary real estate hub, attracting investors, homeowners, and global attention.

Going one step further, Knight Frank's global index further underlines that in the third quarter of 2023, Greece secured the 3rd highest position among 56 countries concerning the average annual increase in nominal prices. This global recognition affirms Greece as a significant player on the international stage.

The following metrics, presented by Alpha Bank, reflect the upward track witnessed in the real estate sector in Greece:

Gross Value Added (GVA):

The GVA of the construction sector has grown at a noteworthy pace since 2018. Specifically, construction GVA in Greece increased by nearly 11% annually during the period 2021-2022 and by 17.2% on a yearly basis in the first nine months of 2023.

Production Index in Construction:

The Production Index in Construction exhibited a growth rate exceeding 24% in 2022, marking the highest increase among the EU-27 countries. This trend continued into the first nine months of 2023, with a 13.4% annual increase. Notably, the building construction, primarily encompassing private constructions, witnessed a remarkable ascent of 16.7%.

Investment Dynamics:

The positive momentum extends to the dynamic increase in investments in construction, which have been on an upward track since 2020. Specifically, residential investments rose by 33.7% in 2022 and by 40.2% in the first nine months of 2023.

Real Estate Market Rejuvenation:

Simultaneously, the real estate market continues its robust recovery. Residential property prices increased by 11.9% in the third quarter of 2023 compared to the same period in 2022, and the annual increase in the first nine months of 2023 stood at 13.9%.

Overall, significant contributors to the Greek Real Estate Success Story are positive economic growth rates since 2017, increased investments in construction, Foreign Direct Investments (FDI) in properties, and the Golden Visa program. Specifically, FDI in properties rose by 29% in the first nine months of 2023, compared to the corresponding period in 2022.

Greek Real Estate appears to be particularly attractive for foreign investors, as they are recognizing the potential for solid returns in a country that seamlessly blends its rich past with a dynamic future.

Buying a Property? 12 things to consider

When buying a house, there are several important factors to consider. Here are some key aspects to keep in mind:

1. Budget and Affordability: Determine your budget and how much you can comfortably afford for a mortgage payment. Consider your income, expenses, and other financial obligations.

2. Location: Evaluate the neighborhood, proximity to place of interest like schools, workplaces, amenities, and public transportation. Research the area's safety, future development plans, and property value trends.

3. Size and Layout: Consider the number of bedrooms, bathrooms, and overall square footage to ensure the house meets your current and future needs. Assess the floor plan and check if it aligns with your lifestyle and preferences.

4. Condition and Maintenance: Inspect the house thoroughly or hire a professional home inspector to assess its condition. Look for any structural issues, water damage, electrical or plumbing problems, and consider the potential maintenance or renovation costs.

5. Resale Value: While you may plan to stay in the house for an extended period, it's wise to consider the resale potential. Research the local real estate market and evaluate if the property is likely to appreciate in value over time.

6. Energy Efficiency: Assess the energy efficiency of the house, including insulation, windows, heating, ventilation, and air conditioning systems. Energy-efficient homes can save you money on utility bills and be more environmentally friendly.

7. Natural Disasters and Environmental Factors: Research the area for potential risks like flooding, earthquakes, hurricanes, or wildfires. Check if the property is located in a flood zone or requires additional insurance coverage.

8. Accessibility and Future Needs: Consider the accessibility features of the house, such as stairs, doorways, and bathroom facilities. Anticipate any future needs, such as aging in place or accommodating family members with disabilities.

9. Financing Options: Research and compare mortgage options from different lenders. Consider interest rates, down payment requirements, loan terms, and eligibility criteria to choose the most suitable financing option.

10. Legal and Documentation: Ensure all legal aspects, including property title, surveys, permits, and inspections, are in order. Hire a qualified real estate attorney to guide you through the legal process and review all necessary documentation.

11. Emotional Factors: Buying a home is a significant decision, so consider your personal preferences, emotions, and how the house aligns with your lifestyle, aspirations, and long-term goals.

We pride ourselves on offering the highest value for money in eastern Attica , ensuring that your investment goes a long way forward achieving your dream home.

At Alestate.gr we ensure you that our properties are well structured with the right materials. All the necessary assumptions have been checked by legal and financial experts. They are well-conditioned, regularly maintained, energy efficient and environmentally friendly. Our apartments are located near the beach with a great view of Schinias National Park and its forest. The ratio between Affordability and its location is one the cheapest in the region of Dikastika. Check out each apartment for more details.

The Future of Real Estate market in Athens

The real estate market in Athens has been experiencing a period of rapid growth and development over the past few years. With a growing population, an influx of new businesses, and a booming tourism industry, the city is quickly becoming one of the most desirable places to live in Greece. As the real estate market continues to expand, there are a number of trends that are emerging that will shape the future of real estate in Athens.

First and foremost, there are plans to redevelop many parts of downtown Athens by 2025. This redevelopment project will involve new construction, renovations to existing buildings, and infrastructure improvements like better public transportation options. These projects should make the city more attractive to potential buyers looking for commercial or residential properties in the city center or the suburbs. Additionally, these developments could spur further economic growth as businesses move into newly revitalized areas.

One of the most significant trends in the real estate market in Athens is the increasing demand for luxury properties. As the city continues to attract more affluent individuals and businesses, there is a growing demand for high-end properties with luxurious amenities, such as swimming pools and saunas. This trend is expected to continue as more people flock to Athens for its unique lifestyle and culture.

Stricter regulations regarding rental property management could become commonplace as local governments seek ways to address issues related to gentrification and displacement of long-time residents due to rising housing costs. Landlords may be required to register with municipalities or adhere to certain standards when renting out units – something that could significantly alter the way they do business moving forward.

The rise of technology is also having an impact on the real estate market in Athens. In recent years, there has been an increase in the number of online real estate portals that allow buyers and sellers to connect with each other and conduct transactions without ever having to leave their homes. This trend is expected to continue as technology continues to evolve and make it easier for buyers and sellers to find each other online. Tech advancements will continue to revolutionize how people search for homes and conduct business with realtors. Buyers will have access to more detailed information about properties than ever before while sellers can leverage powerful marketing tools like virtual tours and 3D walkthroughs to showcase their listings.

Finally, the increasing popularity of Airbnb and other booking platforms have had a major impact on the real estate market in Athens. With more people looking for short-term accommodations, they have become one of the most popular options for travelers looking for an affordable place to stay while visiting Athens. This trend is expected to continue as more people look for ways to save money while traveling.

These trends are just a few of the many that are shaping the future of real estate in Athens. As the city continues to grow and develop, it’s important to stay up-to-date on these trends so you can make informed decisions when buying or selling property in this vibrant city. Predicting exactly what lies ahead for Athens’ real estate market is impossible without knowing all of the variables involved; however, one thing is certain: change is inevitable! As technology continues advancing rapidly along with other factors influencing this dynamic industry we can only wait patiently (and hopefully excitedly!)to see what comes next! With its unique culture, beautiful scenery, and booming economy, Athens is an exciting place to invest in real estate and its future looks brighter than ever.