Greek properties _ 2015 latest news
Greek properties had disappeared in recent years from the international investors’ target completely. Although the prices of real estate in all categories have fallen rapidly, and the Greek market therefore should had become a bargain market for real estate, there were relatively few investors who have invested in Greek real estate the last months. The realized investments were mostly in small to medium sized real estate projects in the tourism sector, either for commercial use, but especially for own use. Properties of other categories were very rarely in demand.
This raises the question of why, despite all the above, the Greek properties are pushed to the sideline by the international investors? The answer is clearly: reason is the political uncertainty that prevails in the country for several months. A real estate investment is always applied medium- to long-term, so investing willingness presupposes a political and especially fiscal stability. The constant political turmoil of the last time in connection with the repeated ballots did not allow the Greek real estate market to recover. Unfortunately, the internal market could not significantly counteract this development due to the lack of liquidity. However, it should be mentioned that this time the recovery of the Greek real estate market will come from “outside”, ergo, through investments from abroad and not by capital from the domestic market, although currently, due to the country risk even the foreign investors do not always find easily financial means for investments in Greece.
In spite of everything, Greek properties are not uninteresting for the global players of the real estate sector. But on the contrary! Most prospects are amazingly well informed about the current market situation and know the good opportunities and the great potential that this buried treasure has extremely accurate. Discussions with them are making extremely positive surprises. Some times there is, however, still a shade of uncertainty and doubt, which enticed back to wait, but now more and more prospectives convey the impression to know these “uncertainties” and to have been somehow “factored”.
For several days after it had become clear due to the adoption of the third memorandum that the worst scenario from the financial perspective for Greece was probably avoided, the first talks between international investors and national consultants were resumed. Many investors see the current time as “the right moment” to enter the Greek property market, especially as the property prices are really on a very good level. The resumption of the privatization process of the private property of the Greek state was another positive message in this context. Only the announcement of the elections by the Prime Minister Alexis Tsipras a few days ago then again convinced some investors to temporarily waiting. Compared to all the past times the prospectives seem to be this time very determined to buy. Even the waiting finally has to end sometime … quod esset demonstrandum!
Basically, it can be stated that by now the timing is right to invest in real estate in Greece. It is truly the person’s “own fault”, who currently does not recognize this. The next step would virtually only be the giving away of real estate, but this will probably not happen. The upcoming election on September 20th, 2015 is a milestone for the future of Greece, and hence an essential factor for any investment in the land. Immediately upon a stable government has been formed, which will continue the European course of the country, no more argument should argue against investing in Greece. Then it must simply be: buy, buy, buy! Decide … now!
Do not hesitate to email or call Mavvidis + Partners for more concrete issues. We will try to reply as soon as possible. Contact us here!