Property Buying, Selling, Renting Why Buy Property in the Greek Islands?
Why Buy Property in the Greek Islands?
The Greek Islands are truly heaven on earth with their dramatic, natural landscapes and rich ancient history. The islands offer something for everyone particularly if you are looking for a low cost of living and a warm, sunny climate. For property investors, the islands offer some of the most desirable homes in Europe and indeed, many would say the world. Investment costs still represent some of the best value in Europe making the Greek Islands a reliable investment.
Improved Infrastructure and Stable Economy
Thanks to EU funding the Greek government has invested heavily in the islands’ infrastructure improving transportation networks and communications and this has lead to surge in demand for property as well as increases in tourism. Additionally, the increase in the number of budget airlines like GB Airlines who now fly directly to some of the islands has increased interest in property purchases on the islands.
The global credit crisis has done much to dampen investor enthusiasm and have lead many small investors to reconsider their investment options now that stocks and shares have become more volatile and traditional banking has laid itself wide open to market swings. Many investors are now putting their money back into property but knowing where to invest is not always easy.
The Greek economy is one of the Euro-zone’s fastest growing markets. Since 2000 it has experienced continuous prosperity, which has lead to noteworthy growth in the areas of construction and engineering. Greece offers a high degree of economic stability and is one of the few countries in Europe to guarantee all deposits held within its banking system; indeed The Daily Telegraph dubbed it “the heart of a new financial Europe”. Greece is at the centre of the much publicised emerging markets and its banking sector is one of the best performers in the EU.
George Alogoskoufis the country’s Economy and Finance Minister maintains that Greece is in a healthier economic position than most countries in the Union and therefore is better able to survive the global downturn, “Greece's economy, due to reforms that took place in previous years and the dynamic it has developed, is more resilient than other European countries in this extremely difficult international environment.”
Hotspots
The Greek Islands offer a wide variety of choice and styles to suit all price ranges. Collectively, they are renowned for their enviable climate, low cost of living and exceedingly low crime rates. Islands like the Saronic Islands, which are the closest to the Greek mainland and more importantly its capital Athens, have witnessed impressive growth. Aegina, which lies 50 minutes from the mainland, has become a popular investment spot for middle-income families looking for holiday homes, whereas Spetses has more luxury property on offer. Samos close to Turkey in the south east of Greece’s island territories is a delightful haven of peace and tranquility. It is also the birthplace of the mathematician Pythagoras and is famed for its nectar wine. There are now direct flights from the UK, which have boosted rental income and there is an established domestic market of property owners and renters there.
Property – the Safe Bet
With traditional investment areas not proving as stable and lucrative, property investments have become more popular and are more of a tangible asset, which can provide long term profits and through rental a regular income. The Greek Islands’ property market is one of the few in Europe still experiencing growth in prices and it’s not just the bottom end of the property market that is showing growth; Giorgos Souflias, Greece’s Public Works Minister stated that, "Demand for luxury homes within complexes is constantly rising," Domestic demand for island property remains strong as does demand from sun lovers in Northern Europe who continue to fuel the market. The islands are also unlikely to become overdeveloped thanks to rigid Greek building regulations, which inhibit this. Respected international real estate Knight Frank predicts that the Greek islands are “one to watch” if you are prepared to accept some risk. Knight Frank’s head of international research, Nicholas Barnes maintains, “The Greek Government now wants to attract tourism and second-home-ownership. Planning laws are being freed up, which means good chunks of land should become available.” If you have the funds to invest and are prepared to wait then there is excellent potential for high-growth.
Property investment is a sound way to put your savings into a solid asset particularly during these turbulent times. Additionally it can provide you with a cost effective holiday home capable of generating income through a strong rental market. Off plan investments on the islands will also allow your savings to grow during the build period and once the build is ready, the financial crisis should be through the worst and allow you to sell on at a profit. Savvy investors are already following Knight Frank’s tip for Greek Island property and if you are looking for a good bet then invest in the Greek Islands and weather the current financial storm – you will not be disappointed..