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Greece is a prime destination for holiday home

property in greece

The Greek property market is evolving into the promised land for aspiring holiday home buyers from around the world. This is thanks to a series of targeted interventions by the government in addition to the existing instruments for the attraction of investors/buyers, and to the country’s inherent advantages.

In the last 12 months the government has introduced the suspension of the 24% value-added tax on new houses that paved the way for foreign buyers to acquired newly built holiday homes – which also means they are built to higher quality standards. Through that measure that will last for three years, up to the end of 2022, buyers of a secondary home in Greece will not be taxed the 24% VAT but only the 3% transfer tax.

Even more important is the regulation concerning the transfer of pensioners’ tax residence from countries with which Greece has bilateral agreements for double taxation avoidance. This is included in the Finance Ministry bill to be voted into law, providing for any foreign retiree choosing to take his tax residence to Greece to pay income tax of just 7%. This flat rate will apply for an entire decade.

Besides the existence of a double taxation avoidance agreement, there is a condition for the pensioner to spend at least 183 days per year in Greece. Eligible retirees should have also not been Greek tax residents for five of the last six years.

These measures are also combined with the Golden Visa residence permit program that concerns potential investors in Greek real estate hailing from outside the European Union. This makes Greece a prime destination for buying a holiday home, complete with tax and investment incentives for citizens from the EU and from third countries such as China, Russia, Turkey, the Middle East and the US.

Besides those incentives, there also exist other major advantages, such as the affordable acquisition cost of holiday homes in most areas, the capital gains that can be reaped, and the undisputed unspoilt natural beauty of the Greek landscape.

Source: ekathimerini

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Prime Minister Mitsotakis hails launch of constructing project at Elliniko area

Prime Minister Kyriakos Mitsotakis and Lamda Development CEO Odisseas Athanasiou on Friday attended a ceremony to mark the beginning of construction work on a major investment project at Elliniko area, the former site of the Athens airport on the capital’s southern coast, nine years after the country launched its first tender for the sale and long-term lease of the vast plot. Lamda Development plans to turn the site into a complex of luxury residences, hotels, a yachting marina and casino at a total cost of about 8 billion euros. Mitsotakis hailed the launch of ‘the country’s most emblematic investment’ project despite the difficult economic climate.

Source: ekathimerini

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Growing property market in Greece

Greece has the fifth fastest growing property market in the European Union, according to July-September 2019 data published yesterday by Eurostat, as only four EU member-states beat the country’s 9.1 percent annual price rise recorded by the Bank of Greece.

This is a diametrically opposite picture to that of previous years, when Greece was one of the very few countries where property rates were in decline.

Greek price growth accelerated over the course of 2019: Based on the revised data from the BoG, property rates expanded 5.3 percent year-on-year in the first quarter of the year, with the annual rise climbing to 7.7 percent in Q2. Property prices across Greece posted yearly growth of 7.4 percent over the January-September period, though in Athens the rise amounted to 10.3 percent. In 2018 the nationwide average growth rate only came to 1.8 percent.

Property market professionals say that a key factor for this growth – which started in early 2018 but soared last year – has been the inflow of funds from abroad for the acquisition of properties, mainly for utilization in the short-term rental sector.

In 2018 inflows jumped 172.1 percent to 1.12 billion euros from 414.7 million in the previous year. This trend continued in the first half of 2019, which the latest data concern, with 94.6 percent yearly growth to 736.6 million euros from 378.5 million a year earlier. This is thanks to the continued improvement of the tourism sector’s figures, the improving economic sentiment in Greece and investor expectations of a further increase in their returns from the highly popular short-term rental sector, according to an analysis by Alpha Bank. It also points to the significance of the program for the concession of five-year residence permits (known as Golden Visas) to non-EU citizens who invest at least 250,000 euros in Greek properties.

Alpha’s analysts stress the significance of rising property prices, which translate into an increase in the value of loan collateral, thereby improving the banks’ net position while increasing the wealth of households.

Source: ekathimerini

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Rental rates around Greece rise by an average 24 percent

The rents that landlords charge in areas of Attica considered the most affordable has soared to match the increases recorded in the rest of the property market over the last 12 months.

The latest available data from the Spitogatos Property Index, drawn up by the team at the property ads website, show that asking rates for residential rentals in the western suburbs of Athens during the third quarter of the year rose 24 percent from the same quarter in 2018 to reach 6.2 euros per square meter per month, from 5 euros/sq.m.

The suburbs of Piraeus – where Attica’s least expensive housing used to be found – saw an even greater increase, of 27.3 percent: The average asking rate comes to 5.88 euros/sq.m., against 4.62 euros/sq.m. just one year ago. Therefore 100 sq.m. apartments are now on offer for 580 euros per month, up from 460 euros a year earlier – i.e. a hike of 120 euros/month.

On the other hand, rates in Eastern Attica (Pallini, Paiania, Spata etc) posted a 2.8 percent decline year-on-year, with the average monthly rate at 5.83 euros/sq.m., from 6 euros/sq.m. in Q3 of 2018, making the area the cheapest in Attica. As for the center of Athens, it appears the rental rally is peaking as the average rate grew by just 2.5 percent in a year to 9.23 euros/sq.m., from 9 euros/sq.m. in 2018.

The cost of renting is considered excessive for the average Greek household, especially given that the average rate was at 6-6.5 euros/sq.m. a few years ago.

Across Greece, Spitogatos showed a rate rise of almost 9 percent year-on-year in the July-September period, to 7 euros/sq.m. from 6.43 euros/sq.m. last year.

From 2011 to 2015, rental rates around Greece slumped by a total of 40 percent, all but offsetting the 43 percent growth seen from 2000 to 2010. Today they appear to be climbing back toward that level.

The article from ekathimerini source

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How to successfully buy a property in Greece

crete hotel for sale

Greece is a favorable investment destination not only because of its natural beauty and mild climate, but also because of a significant drop in prices following the financial crisis that emerged after 2010. Investors from all over the world are now looking at Greece as the new “hot” investment destination and rushing to benefit from the abundance of quality real estate available at affordable pricing. Many buy as end users and others with the aim of long term letting or airbnb.

Usually the real estate in Greece is acquired by purchasing contract: The buyer and seller appear before a notary public and sign a deed which is subsequently registered at the local cadaster or land registry.

EUROSPACE Real Estate offers a big selection of properties to choose best suitable for you. After selection of the property, our lawyer performs all the necessary legal searches. The title search takes place at the Land Registry and ensures that the asset in question indeed belongs to the seller and that it is clear of any encumbrances (such as mortgages, liens, foreclosures etc). The lawyer also checks the suitability of the asset and if this is located in an area where prohibitions or restrictions apply.

EUROSPACE Real Estate helps with the issuance of a tax number for a new buyer. It is a requirement of the Greek State that every transacting party (natural person or legal entity) has its unique tax number before acquiring real estate.

After the buyer has a tax number, the next step is to pay a property transfer tax. Currently at 3% of the value of the transaction.

After the transaction tax is paid both buyer and seller are to sign the purchase contract before a notary public. The buyer gets the title deed, which is the first step to ownership of the property.

The registration of the title deed takes place at the local Land Registry and is the absolute proof of ownership.

As a last step our agency register your property online with the tax authorities and change the electricity and water supply billing to the new owner’s name.

EUROSPACE Real Estate Group offers after sell service such as: property renovation, property management, long or short terms rent, tax advising.

Please do not hesitate to contact us if you have questions on property acquisition in Greece.

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Expansion on River West shopping center

Works are set to begin on the extension of the River West shopping center on Kifissou Avenue in Aegaleo, western Athens, in the next few days. Sources say the implementation of the 18.5-million-euro investment is close to starting after more than two years of planning.

Noval, a subsidiary of the Athens-listed Viohalco Group, is planning the construction and operation of a commercial property adjacent to River West – effectively an extension to the mall – with 8,000 square meters of space.

The new building is expected to host new stores, without ruling out the addition of entertainment uses that would enhance the appeal of the mall. Currently River West has an area of 20,000 sq.m. The 35-million-euro investment was launched in 2011.

As demand for store leasing within malls has remained high for years and the occupancy rate at River West comes to 97 percent, the need for its expansion was never in doubt.

Viohalco acquired a neighboring plot of 3,700 sq.m. and a 20,000 sq.m. building, planning the extension of River West with the addition of new brands.

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Property price in Greece are expected to continue recovering

Property prices in Greece have recouped 4.2 percent of the ground lost during the financial crisis, thanks to the steady course of recovery over the last 18 months.

Property rates shrank 42.4 percent from the third quarter of 2008 to that of 2017 , but have started to show signs of a rebound since the start of 2018, according to a survey titled “The Prospects of the Property Market in Greece” by Tasos Anastasatos, chief economist at the Eurobank group.

Bank of Greece data show that the pace of growth has been increasing, starting from 0.5 percent and reaching up to 7.7 percent, which was the national expansion rate in April-June 2019 on an annual basis.

In Attica, where demand is stronger, prices shot up at an annual rate of 11.1 percent in Q2, which is even higher than the rates recorded during the property boom of the 2002-2007 period. In Thessaloniki, prices rose 7 percent in the spring, while in other major cities the increase reached 4.1 percent and in the rest of the country it came to 4.9 percent.

Even so, Greece lags considerably compared to the other bailed out states in the European Union that saw property prices sink. In Spain for instance, house sale prices declined 35.3 percent during the economic crisis, but have since rebounded by 15 percent. In Ireland the drop exceeded 53 percent, but the rebound has come to 34 percent, while in Portugal prices did not drop that much (by just 13.3 percent) and have now become even higher than before the crisis, rebounding by 33.5 percent.

Transactions in Greece are also on the rise, according to figures from the database of the Independent Authority for Public Revenue, with last December posting a spectacular 65 percent increase from the December 2017.

All signs are pointing to the continued growth of house prices as gross domestic product, employment and private consumption are also on the rise: The economy has been growing for nine consecutive quarters and is projected to expand further, private consumption is edging up after losing 39 billion euros from 2008 to 2017, and the unemployment rate has been in a steady decline since the third quarter of 2013.