Greek Villas: 3 million investors are looking for real estate in Greece - Why foreigners "vote" Greece
The increase in interest rates may have raised concerns for many; however, it has had a positive impact on the Greek real estate market, as there has been a recent surge in demand for vacation homes from foreign investors.
Lower selling prices compared to other European countries make Greece an ideal destination for foreign buyers of vacation homes, according to an analysis conducted by a Greek company based in the Netherlands specializing in the sale of holiday properties in Greece. The fact that the average selling price of a new vacation home in Greece is around 300,000 – 350,000 euros makes it attractive to European investors. This affordability allows them to avoid taking out a housing loan to acquire a property.
“After the increase in interest rates, we see that among our clients, the desire for bank loans has frozen in the context of acquiring a vacation home. This happens because the loan interest, ranging from 4% to 5%, essentially nullifies the return that an investor can have from operating the purchased vacation home,” notes the CEO.
According to him, this trend means that investors from Western and Northern European countries, such as Germany, the Netherlands, Belgium, France, the United Kingdom, Austria, and Switzerland, now prefer to use exclusively their savings to acquire a vacation home abroad, specifically in Greece.
This approach ensures fourfold benefits, as outlined in its analysis:
- Protection of their capital from inflation.
- Satisfactory returns from operating the invested property.
- Combining income from operation and personal use.
- Excellent prospects for the future appreciation of their property in case they wish to sell it after 5-10 years.
“There is great value in Greece’s vacation homes, as with a relatively low amount compared to other markets, one can acquire a home near the sea or with a sea view, a pool, and all the amenities,” points out.
He adds that, according to estimates based on relevant surveys, at present, there are approximately 3 million citizens from Western Europe considering investing a capital of around 300,000 – 350,000 euros for operation and personal use.
As a result, the Greek market is evolving into a particularly “hot” one among foreigners, which is reflected in the preferences of tourists and, certainly, works in favor of the vacation home market. The combination of the offered advantages is such that more and more investors are choosing it. “The market has also clearly changed in recent years from a buyer’s market to a seller’s market, especially for new residences. While 10 years ago, we saw buyers choosing properties, now, for some projects, we have a waiting list of interested parties waiting for the next project to be announced,” concludes.
NEWSPAPER ARTICLE December 2023
Ηoliday homes: Up to 3 million Europeans want to buy in Greece, where prices fluctuate
Greece is emerging as a magnet for European capital in the vacation home market, according to ongoing research and analyses that continue to come to light. Specifically, according to estimates the Greek vacation home market is turning into an “El Dorado” for up to 3 million prospective European buyers.
Surprisingly, the increase in interest rates has positively impacted demand in recent months, attributed to the lower selling prices prevailing in our country compared to other European markets. Consequently, foreigners can avoid taking out a housing loan in their home country to acquire a vacation home in Greece, opting instead to finance the purchase with their own funds, whether from savings or other sources.
Following the rise in interest rates, there is a noticeable decline in the desire for bank loans within the context of acquiring a vacation home. This occurs because the loan interest, ranging from 4% to 5%, essentially erodes the returns an investor could have from operating the purchased vacation home”. Investors from Western and Northern European countries, such as Germany, the Netherlands, Belgium, France, the United Kingdom, Austria, and Switzerland, now prefer to use exclusively their savings to acquire a vacation home abroad, specifically in Greece.
This approach ensures fourfold benefits: protection of their capital from inflation, satisfactory returns from operating the invested property, combining income from operation and personal use, as well as excellent prospects for the future appreciation of their property in case they wish to sell it after 5-10 years.
