About 200,000 holiday homes could be sold to foreigners in the coming years, according to experienced bank executives, who expect a significant increase in demand from abroad for real estate in Greece.
As they say, Eurostat data show that people over the age of 65 in Europe travel for more days and out of peak season, helping to extend the tourist season.
In addition, they prefer to stay in private homes, which creates a unique opportunity for the sale of holiday homes and the inflow of fresh capital.
In this context, the same circles believe that through a comprehensive plan, it is entirely possible to sell 200,000 properties of all categories to foreigners in the medium term.
They note that this can be done either with individual properties, or with properties integrated in residential complexes, adapted to the special requirements of the elderly.
Supporting this, it is estimated that the imminent abolition of the additional ENFIA property tax will work, making the annual charge of each property measurable, regardless of the amount of total property to be acquired in Greece.
Increased demand from Greeks
The same sources believe that with the final control of the pandemic and the full liberalization of activities and mobility of citizens, the growth rates of real estate sales and prices will accelerate.
This is because the demand will increase significantly from Greeks who are interested in acquiring a main residence. These are trends that are already evident in the real estate market.
Based on the data-estimates collected by credit institutions, the nominal prices of apartments in the second quarter of 2021 were increased by 4.6% (provisional BoG data) compared to the corresponding quarter of 2020.
The truth is that very low to zero returns on deposits contribute to the demand for alternative placements, with the real estate market dominating.
An investment property today offers net returns through rents of 3% to 4% on average, without taking into account the expected increase in value.
The recent adjustments of the objective values will give a significant impetus to the transfers, especially in the areas where large increases are recorded.
It is estimated that many taxpayers will rush to the end of the year to draw up purchase contracts to avoid additional charges of 3% tax on fair value.
In this context, many owners are expected to take advantage and proceed with purchases and sales, mainly in areas where increases were recorded such as: 95% in the center of Athens, up to 76% in Chalandri, 75% in Dafni, 62% in Anavyssos, 60% in Agios Dimitrios, 57% in Elliniko, 53% in Glyfada and 41% in Zografou.
The new law on the upgrade of the services of the Land Registry is foreseen to operate on several levels.
Specifically, the percentage of the cadaster of the country that reaches 35%, in two years will reach 90%. At the same time, the bureaucracy in real estate transfers will be significantly reduced.
Popular houses
According to information, the average area of a house sought for purchase is 95 sq.m.
The maximum price set by prospective user buyers in their search shows an increase for 2021 and is around 160,000 euros compared to 147,000 euros in 2020.
According to the head of a systemic group mortgage group, the maintenance of low interest rates by the ECB, the high liquidity of banks and their intention for strong credit expansion, favor lending.
Another reason that leads to an increase in disbursements is the high rents in the houses.
This is because paying the rent every month, although it offers housing, does not return anything in terms of investment.
On the other hand, in the case of buying a home, either with own resources or by taking out a mortgage, the property is a property that provides imputed income if owned.
There is also the possibility of profit in case of future resale, as although property prices have risen in recent years, they come from a sharp drop in the first years of the crisis.
This means that the purchase of a house can be significantly more profitable than renting, if the interested party has 20% of its commercial price for the necessary own participation.
Rent or purchase
The following is a typical example with the benefit that one can have if one leaves the rent and acquires one’s own house.
• Suppose a house with a commercial value of 100,000 euros is rented for 450 euros per month, or 5,400 euros per year
• In the case of its purchase for home ownership at current value, the picture is as follows:
– 100,000 euros is the value
– 6,000 euros the various expenses (real estate, notary, lawyer, transfer tax, mortgage rights, etc.)
– So a total cost of 106,000 euros.
– In addition, there is an annual charge due to ENFIA and maintenance costs, amounting to 400 euros.
In case of receiving a mortgage loan of 80,000 euros, lasting 30 years with an interest rate of 3%, the monthly installment is set at 340 euros (-24% of the rent) or 4,080 euros per year.
So there is a relief in relation to the rent of 77 euros per month or about 1000 euros per year (924 euros).
Latest News
Deadline for Postal Vote Registration Expires on Mon.
More than 157,000 Greek citizens had registered on the relevant online platform so far
Orthodox Palm Sunday Today; Shops Open in Greater Athens-Piraeus Area
Orthodox Holy Week begins on Monday, April 29, and ends on Sunday, Easter Sunday or Great and Holy Pascha (May 5)
Greek Retailers Remain Optimistic About Easter Shoppers’ Turnout
While stores are expected to be open on Sunday, April 28, the majority of Easter shoppers will likely do their shopping during the Holy Week, following the deposit of Easter bonuses
Europeche: Greek Apricot Production Recovers
Europeche forecasts the production will bounce back despite a slight decrease in varieties attributed to high winter temperatures
Bank of Greece (BoG): Business-Household Deposits Up 1,675bln in March 2024
In March 2024, the monthly net flow of credit to the general government was negative by 469 million euros
FT: Greece’s Economic Rebound a Balance of Growth and Poverty
Eurostat data revealed a significant 10.8% drop in Greek public debt relative to GDP in 2023, alongside a 2% economic expansion, outpacing Germany's performance.
Lavrio Port Authority Next Up for Privatization
A deadline for the submission of expressions of interest is May 14, 2024
Eurostat: Greece Records Largest Drop in Natural Gas Prices in 2nd Half of 2023
The price of electricity and natural gas in Europe was down following a substantial surge that began before the Russian invasion of Ukraine and peaked in 2022
GEK TERNA Still Considers Leveraging Concessions Portfolio as Financial Tool
President and CEO of Gek Terna George Peristeris explained the company's plans on Tuesday on the sidelines of the inauguration of sections of Greece's E65 highway
NielsenIQ: 3% Supermarket Revenue Increase in Q1
Private label products are gaining traction, comprising 25.4% of shopping basket shares, up from 24.7%