The Bank of Greece compared the price dynamics of apartments for the third quarter of 2019 and 2020. Two criteria were taken into account: types of objects and cities in the country.
The cost depends on the type of facility. Prices for apartments in new buildings are growing faster than in old houses. “Old” are considered to be objects built before 2015.
Rising prices for apartments in Greece
Prices in different cities of Greece. The biggest increase in apartment prices is in Athens, followed by Thessaloniki. In small towns in the central part of the country, apartments can now be bought at a reduced price.
The dynamics of apartment prices in the cities of Greece
The graphs show that prices are growing twice as slowly as in 2019. The real estate market has been affected by the pandemic and the financial crisis. Because of closed borders, wealthy foreigners could not come to the country to choose their accommodation and conclude contracts. The purchase of flats was also postponed by investors who planned to rent out their flats to tourists.
Why is it more profitable to buy Greek property in 2020
Between January and September 2020, 69% fewer holidaymakers visited Greece than in the same period in 2019. This is a direct consequence of the pandemic and quarantine. A decline in tourist flow will reduce the country’s economy by 9% at year-end.
The Greek government believes that the tourism sector will fully recover in the second half of 2021. Minister of Tourism Haris Theocharis said that travel will again be possible thanks to vaccines and express coronavirus tests.
The country’s economy will start to grow when the government completely lifts the quarantine and opens up borders for tourists. The European Commission and the Moody’s credit agency give this forecast. They forecast that Greece’s GDP will grow by 5% in 2021. We talked about this in the material “When it is more profitable to invest in real estate in Greece: in 2020 or 2021”.
Property prices will start to rise faster when the economy recovers. This is why real estate experts Immigrant Invest recommend not postponing the purchase until the end of 2021.
Now investors can buy more attractive properties at a lower cost. In this case, a foreigner can get a residence permit in Greece. The investor needs to buy one or more objects with a value of 250 000 €. It takes 5 years to own real estate.
Apartments in a residential complex near the waterfront of Palayo Falero, Greece. Price - 305 000 €
Apartment with sea view in Thessaloniki, Greece. Price - 300 000 €
Apartments with veranda in a modern residential complex in Athens, Greece. Price - from 343 000 €
How to buy property in Greece while the borders are closed
In May 2020, the Greek government simplified procedures for investors who wish to buy property under the residence permit programme for investment. The investor may not come to the country to conclude a purchase and sale contract. It is allowed to pay all expenses from a foreign account.
A participant in the investment programme needs to come to the country for fingerprints. This condition has remained unchanged. The Greek Migration Service uses fingerprints to produce a residence permit card, a document that confirms the resident status of the country.
Russians can fly to Greece to choose a property, sign a contract and submit biometrics. The country welcomes 500 Russian citizens per week through Athens, Thessaloniki and Heraklion airports. To enter the country, you must bring a certificate with a negative coronavirus test result. You also need to show your hotel reservation or any other document confirming your address in Greece upon arrival.
The limited air traffic regime with Greece is valid until 14 December. It may be revised depending on the epidemiological situation.
Two-storey villa with sea views in Sithonia, Greece. Price - 400 000 €
Three-storey villa by the sea in Sony, Greece. Price - 500 000 €
Traditional Cretan style villa with pool in Pirgos, Greece. Price - 210 000 €