EN0403_01+ 29/3/18 6:38 μμ Page 1 SATURDAY – SUNDAY, MARCH 31 – APRIL 1, 2018 KATHIMERINI l S1 SPONSORED SECTION REAL ESTATE Greek properties attract many foreigners High-end resorts and villas catering to needs of high-net-worth individuals put market on new footing By ILIAS BELLOS from their pre-crisis peak, and with booming summer tourism buoying After a deep correction in the first half short-term rentals, Greek property of the decade, the Greek real estate mar- prices now offer a highly attractive yield ket has returned to stability, and tourism on investment, industry experts say. sector properties and office spaces are That has drawn investors from China, even seeing an appreciation. At the same who now account for almost half of all time, investor interest is proliferating Golden Visa holders. But another rea- and sentiment is improving. Neverthe- son is Greece’s EU membership. In the less the prospect of a further recovery past year, nationals from several neigh- of the real estate market hinges, inter boring Mediterranean countries – most alia, on the strengthening of the Greek notably Turkey – have also been buying economy's outlook, improved business up Greek real estate, lured both by the and household confidence, an easing of access to the EU that a Golden Visa of- bank financing conditions, a reduction fers, as well as to diversify their hold- of red tape, the completion of the na- ings away from an uncertain climate in tional cadaster and the consolidation of their home country. a stable tax framework, according to the In the meantime, the rapid growth Bank of Greece. of short-term rental websites such as The decline of the Greek real estate Airbnb, Homeaway, Booking and others market began in 2009, mainly driven by in Greece since 2010 has created a new the contraction in GDP per capita, the player in the hospitality market. The rise drop in mortgage loans and the rise in in the number of world travelers in com- taxation, dragging investments and res- bination with high hotel rates and de- idential property prices lower, Pricewa- mand for low-cost travel has made these online platforms very popular and boost- <<<<<< ed apartment prices in prime locations The special residence pro- and most certainly villas on Greece's Aegean and Ionian islands and coasts. gram for foreign investors Furthermore a new real estate mar- has taken off, reflecting in- ket segment is emerging in Greece, tar- geting high-net-worth individuals. The creasingly bright growth leader in this field is TEMES, a premier prospects as the country developer of luxury mixed-use resorts. Its Navarino Residences at Costa Navari- emerges from economic no in Messenia in the Peloponnese was crisis, while it remains an awarded as the “Best International Res- important gateway to the idential Development” and “Best Euro- Greece’s Golden Visa program grants a permanent residence permit – and access to 26 Schengen-area countries – to individuals and their families who invest a minimum pean Residential Development” for European Union of 250,000 euros in Greece, for example in real estate or other productive investment 2017-18. Such developments present a unique opportunity to acquire luxury freehold real estate in Greece in privi- terhouseCoopers calculates. A loss of ap- was twice that recorded in 2016, accord- driver for participants, while, for the first emerges from economic crisis and its Golden Visa has become still more at- leged Mediterranean beachfront loca- proximately 18 billion euros (8.2 percent ing to a study by NAI Hellas, a leading time, the completion of the second re- growing importance as a gateway to the tractive to foreign investors, comparing tions. of GDP) in construction investments was firm of commercial property consult- view of the country’s program with the European Union, according to Enter- favorably with similar programs in coun- More are following suit. Amanzoe observed within 2008-15, resulting in a ants, valuers and managers based in institutions [European Central Bank, Eu- prise Greece. In the last year, the number tries including Cyprus and Portugal. A and One & Only are creating luxury villas further slowdown in economic activity. Athens, which provides a wide range of ropean Stability Mechanism, Interna- of foreigners awarded a Greek Golden stepped-up promotion program has also in Argolida and Kea respectively, while “For the rapid recovery of the real estate real estate consultancy services. tional Monetary Fund, European Com- Visa has soared, rising by more than 40 helped. on the so-called Athens Riviera more market, a new regulatory framework, Investors’ prospects for Greece in the mission] appears to have impacted in- percent from a year earlier. Greece’s Golden Visa program grants high-end properties are being built by along with measures to facilitate trans- next five years are significantly higher vestors' intentions. On the other hand, Launched five years ago, at the height a permanent residence permit – and ac- Astir Pallas at Vouliagmeni and Grivalia actions (creation of a land bank) and re- now compared to 2016, with 48 percent the county’s taxation on real estate re- of the country’s economic crisis, the cess to 26 Schengen-area countries – to at Glyfada. duce oversupply (massive redevelop- of respondents in the NAI Hellas poll mains the biggest barrier for the major- Golden Visa program is now coming of individuals and their families who invest The wider market for Greek villas is ment) are needed,” a relevant PWC paper stating that the potential of the country’s ity of respondents, followed by the lack age amid a new wave of investor inter- a minimum of 250,000 euros in Greece, concentrated in some of the most pop- stresses. RE market was good or very good. “The of quality investment product. While est, particularly from countries such as for example in real estate or other pro- ular Greek tourist destinations, such as However, prime properties in each turning point of the Greek economy is the political risk factor has decreased China, Russia and Turkey. There are sev- ductive investment. According to the Myconos, Santorini, Rhodes, Corfu, sector are already staging a strong come- the main driver for investors that is ex- since 2016, public sector intervention in eral reasons for this, from Greece’s sun- latest data from end-November, a total Paros, Crete and the islands of the Sa- back, with five-star hospitality assets at pected to consequently lead to capital the completion of transactions is a major ny Mediterranean climate and high qual- of 2,170 Golden Visas have been issued ronic Gulf. the forefront. appreciations. The high number of dis- concern from investors' point of view.” ity of life, to its low property prices. A directly to foreign investors – and more The villa rental market in Greece, In a clear sign of the improvement in tressed properties remains one of the In the meantime Greece’s special res- budding economic recovery plays a role than 5,000 when family members are which appeals to the buy-to-rent in- investors' perception of Greece, the num- most important drivers although it still idence program for foreign investors has for some investors, while for others it's included – up from 1,522 at the end of vestors, is relatively new and still quite ber of investors willing to consider in- ranks lower than in 2016. The continuing taken off, reflecting increasingly bright political uncertainty abroad. And since 2016. immature, but this also provides oppor- vesting in real estate in Greece in 2017 growth of Greek tourism is again a main growth prospects as the country the law was revised in 2015, Greece’s After falling by as much as 50 percent tunities for the smart investor Sun, sea and residence permit luring investors to snap up Greek properties By LINA GIANNAROU also Swiss and Israelis. In Israel for exam- ple, it is rumored that wealth will be heav- The phrase “hen fangbian,” which means ily taxed so many people are deciding to “very convenient,” is one of the most com- diversify their risk. Besides, everyone ex- mon in China. It is used daily, as conven- pects prices in Greece to rise sharply, that ience has become the number one virtue soon one euro will cost two. At the same of everyday life. All transactions in the time, it is the best and cheapest program country are now made by mobile phone, in Europe that allows many people to using the WeChat and Alipay applications, combine business with pleasure,” he something that is “very convenient.” So, adds. In addition to that, a large section what is it that makes someone from the of buyers don't just want to have a sum- other side of the world decide to up and mer house or to rent the property for extra move to this little corner of the map, income, but wish to relocate permanently where, among other things, nothing is to Greece. “They want to be fully integrat- easy or simple, but instead hassle is part ed into Greek society, they search for of everyday life – the opposite of the Chi- schools, universities. These are mostly nese saying? Perhaps we should ask our- wealthy people who want to change their selves this question, as the Chinese, Rus- lives,” Varnavas says. Anna Haughton, sians, Americans, Turks and others who an American with Greek roots, lives and decide to buy a home and settle here, seem works in Athens as an investment adviser. to see something in our country that we In the past few years, she has handled have become so accustomed to we don't dozens of cases of Americans who want to acquire property in Greece.