Is buying a property in Greece a good investment for would-be expat retirees?

Is now the time for would-be expat retirees to bag a Greek investment property?

Greece has always been a refuge for romantic expatriates for its long history and fascinating culture, but the historic country hasn’t always been a beacon of political and economic stability. Over the past decade or so, its problems with the European Union and the rise of other Mediterranean hotspots has resulted in its falling down the popularity ladder both as a base for career-minded expats as well as sun-seeking retirees. However, the reasonable cost of its real estate is now a feature drawing expat investors to take a chance on this fascinating land.

Recently released figures show a six per cent rise during the first six months of this year in the prices of residential apartments compared with the same timespan in 2018. Although this represented the sharpest growth in over ten years, current prices are still 36 per cent lower than in 2008. Foreign direct investment in Greek property now stands at about 736 million euros compared with 2017’s 425 million, with Eurozone purchases accounting for between 70 and 80 per cent of the annual totals of real estate investment. Buyers’ home countries included Spain, Italy, France, Germany, Belgium and the Netherlands, although the UK wasn’t mentioned, perhaps suggesting Britons now prefer better known destinations such as Portugal and France.

When making a property investment, buyers tend to rely on three questions, with the first being whether local people can afford to buy homes in the chosen region. The second question is normally linked with the benefits of investing in real estate and the third concerns the likelihood of getting rental income for the investment. At the present time, Greece’s price to income ratio is attractive, meaning an investment property purchased at this time could well resell at a profit to local people looking for a long-term home. Another positive indication is that Greece’s GDP has grown over the past three years and its quarterly average is three times higher than that of the EU.

Finally, political stability seems to be the name of Greece’s present-day game, even although unpopular new laws may occasionally send volatile Greeks out on the streets to protest for a short while. In fact, the country hasn’t seen prolonged public unrest during the past seven years. As a result, major investors are flocking to throw money at Greek property whether residential or commercial. For would-be expat retirees, investing in a beachside villa or condo as a sign of commitment to the country and renting out to holidaymakers until the time comes to quit the job gives extra cash in the pocket as well as putting down roots against a permanent move in the no-to distant future.