Greek real estate prices may have risen, but remain much lower than in the European real estate market. This is the basis of the reasoning of the Russian founder of Tranio George Kakmazov, who is a stable investor in the domestic real estate market, considering that Greece still offers strong prospects for surplus value.
Annual increase of 15%
According to Kakmazov, today the average requested price of an apartment in Athens is 2,500 euros / sq.m., While in Barcelona and Berlin, the corresponding number is 6,000 euros / sq.m. while in the Greek region, mainly in Northern Greece, the prices are from 1000 € - 2000 € sq.m., depending on the region. Prices in the Greek capital are 25% higher than in 2017, when they were around 1,800 euros / sq.m. However, they are far behind the pre-crisis levels in 2008, when an apartment sold for 3,500-4,000 euros. Compared to 12 years ago, prices are 30-35% lower, with Kakmazov estimating that if there are no exogenous changes in the Greek economy, they will continue to grow at an annual rate of 10-15%, reaching 3,500. euro / sq.m. over a period of 2-3 years.
Over the past 18 months, rising prices have been fueled by strong demand from foreign investors and ever-increasing tourist arrivals, according to Kakmazov. It is estimated that from 2015 to 2019, tourist revenues increased by 1/3, while rental prices increased, only in 2018, by more than 9%. A very large number of residential properties have been converted into rental apartments, which has been helped by Kakmazov, who has bought a significant number of properties in recent years.
Strong investment interest
Another factor that Kakmazov is considering is related to the shift of foreign institutional investors to Greek real estate. It is estimated that since 2017, funds from the US, the Middle East, China and Turkey have invested more than 1 billion euros in residential and commercial property development projects in Athens.
Significant prospects, according to the Russian, are created by the fact that the government emphasizes the reduction of the taxation of legal and natural persons and the attraction of investments. He estimates that the 24% VAT suspension for properties with a building permit from 1/1/2006 will cause a strong growth boost. It remains to be seen, of course, whether this measure will fuel construction activity in the housing sector, with the Bank of Greece arguing - in its annual interim report - that a 24% VAT suspension will not lead to immediate stimulation. construction.
Also, the program of granting a residence permit for investments, amounting to 250 thousand euros, by third-country nationals in real estate, combined with the gradual increase in mortgage loans, make Kakmazov the Greek real estate market one of the most promising tourist destinations. for 2020.
However, the success story of the Greek real estate market is particularly desirable for the founder of Tranio, who has bought, in the last five years, a very large number of old buildings and apartments in Athens. After renovating the properties, Kakmazov is either selling them or renting them out.
