The Greek real estate market has experienced a significant recovery and growth in recent years, fueled by increased tourism, foreign investment, and improving economic conditions. After a prolonged period of stagnation following the financial crisis, property values have been steadily rising in many areas.
The most sought-after areas for real estate investment in Greece include:
Athens: Offers a mix of modern apartments and historic properties.
The Greek Islands (Mykonos, Santorini, Crete, Rhodes): Attract high-end buyers and tourists, particularly for vacation homes and rentals.
Coastal Regions of the Mainland (Halkidiki, Peloponnese): Provide more affordable options with beautiful beaches and access to amenities.
The rental market in Greece is vibrant, especially in tourist areas and major cities. Short-term rentals (e.g., through platforms like Airbnb) are popular, generating substantial income during the peak season. Long-term rentals also cater to students, professionals, and residents.
Property Tax (ENFIA): Varies based on factors like location and property size. Specific rates are complex and require consultation with a local tax professional.
Rental Income Tax: Calculated on a progressive scale. While the exact percentages can vary, they generally increase with higher income brackets. Contact a local tax professional for current percentages.
Capital Gains Tax: Currently at a rate of 15% on the profit made from the sale of a property.
Value Added Tax (VAT): Applies to new construction properties at a rate of 24%.
Property Transfer Tax (FMA): Generally applies to resale properties at a rate of 3% of the property's assessed (taxable) value.
VAT: New build properties are subject to VAT at 24%.
Renovated Properties: High demand, especially in central Athens, for properties that have been modernized.
Energy-Efficient Homes: Growing interest in properties with sustainable features.
Luxury Villas and Vacation Homes: Continue to attract high-end international buyers.
Greece's economic recovery, boosted by tourism and EU funding, supports the real estate market. Government initiatives to attract foreign investment, such as the Golden Visa program, have also contributed to increased property demand.
Continued growth in tourism is expected to sustain the rental market and property values.
Infrastructure improvements and development projects could further enhance property values in certain areas.
Economic instability or external shocks could impact the real estate market.
Bureaucracy and regulatory hurdles can sometimes complicate property transactions.
Over-reliance on tourism could make the market vulnerable to seasonal fluctuations.
The Greek real estate market offers diverse investment opportunities, from urban apartments to coastal villas. While potential risks exist, the improving economic climate and strong tourism sector make Greece an attractive destination for property investment. Investors should conduct thorough due diligence and seek professional advice to navigate the market successfully.
