Prospective ways of development for the Greek real estate market after COVID-19 pandemia
The pandemic has seriously affected our daily lives, our business, and our consumer and investment behavior. Potential buyers have so far taken a break to see how all the situation will be developed in the markets. The same effect applies to social behavior: at the beginning of quarantine, people have bought huge amount of food and daily goods, now they are spending money only for necessary stuff like pharmaceuticals and food. The same situation is happened Real Estate market – buyers and investors are just waiting.
Transactions that we started prior to quarantine are now being almost completed. There are all possibilities for this in Greece ( notaries, tax offices, banks are still working), but new potential buyers are just surfing in the internet, looking for the offers and waiting for the end of the quarantine, and possible changes in prices, the appearance of new offers and possibly new scenarios for buying properties abroad.
So, what are these possible new scenarios for acquiring real estate abroad, and specifically in Greece.
Free money must be invested somewhere
The EU, the same like the United States and other countries, during a pandemic period, begins to support markets with the cash from reservation funds, they switched on a monetary printing press, all the markets are filled in with liquidity. Αll these steps will somehow lead to inflation: money will be depreciated. If you keep the money is in cash, then you have to urgently withdrawn it from the “money” and invested in “concrete gold” (properties). During the crisis it is also important to find your ideal object, a liquid object to invest money.
Real estate investment
Perhaps you have been looking for foreign real estate for a long time already and right now is the exact time to purchase and to make the deal. The new opportunities appear in the market, new objects will come in the market, it is possible to predict the appearance of objects with discounts, there will be “crisis offers” from owners and developers, there will certainly be an opportunity to buy in the correct, dreamy locations (where demand far exceeds the quantity of offers) and most importantly for you during this period is not to miss this opportunity.
Rent and Lease investments, both short-term and long-term
The most popular investment demand in Greek Real Estate market is the rental properties, most of them are the offers for short-term, vacation rent (apartments and villas). Now the short-term rental market has temporarily (to be emphasized – temporarily!) stacked and is going through hard times, there are no tourists in the country, the borders are closed. But long-term rentals market is on contrary developing. Yes, long-term rental yields are lower, but much more stable. As a result, a conservative investor receives Passive, Predictable and Permanent income - the rule of three “Ps”! Income in euros is much more stable in comprising with income in rubles, dinars, liras etc if you look for the long-term period investments.
How to increase it? The good idea is to invest in a project at the early construction stage or re-development stage. In this case, you will gain the extra yields on price growing after the completion of construction or repair and on lease/rent.
This type of investments also includes a very interesting segment of “student rents”. Also its worth to obtain that the new generations are less focused on buying real estate, they are more free, they are changing the places to live easily, they don’t want to be involved into loans and mortgages. For young people, renting is the “hot trend”, so it will be interesting for small investors to invest money in objects for long-term rents.
Relocation, residence permit, passport
Unfortunately, the pandemic crisis exposed problems in society. A lot of our clients from the Russian Federation, Ukraine, Belarus, etc. are very unhappy about how states reacted to the crisis, how it treats businessmen and citizens. How late quarantine was launched, how small and medium-sized businesses are not supported during pandemic period (no credit vacations for the business, the taxes and renal payments are not reduced, no support for the business are provided). All these factors encourage many of them to close their business, to search for a country to move for the permanent residence, to search for interesting programs for residence permits, and here in Greece they can found the very interesting program of “Golden Visa – Life Permission for the buying properties for more that 250k euros” which helps them to move with all the family. It’s worth to say that Greek “Golden Visa” program is the best in the market among all the EU countries.
A place where you can comfortably spend the next crisis
Fortunately, for all of us, everything passes and the Coronovirus pandemia will also pass by, but ...we can admit that everything also repeats. And it is very possible that we will have to deal with such crises, quarantines on the regular basis. So ask yourself where would you like to conduct the next quarantine with your family: in a tidy city apartment or in a small house with a garden by the sea, walking with a dog along the endless beach? Now, when a lot of people are finally realized that they can work remotely, from any place in the world and not to waste time for the office they started to look for the proper place to live. Some of them decide to sell their homes and buy the new ones, further from the city, or even in another city or country, but obviously more spacious, comfortable etc. After all, when people work from home, the comfort, the size of the house, the place where its situated become more important to them. The trend of recent years, when people got rid of country cottages and moved into the city center, is broken. Now, it suddenly became clear, that the real happiness is to live next to nature.
Now it is time to think about all of these, we must make a decision faster, such crises will be regular. Generally, despite all the current problems, we believe that Greek real estate sector may be one of the first sectors of economy to be recovered from the restrictions and quarantine.
Best Regards and your questions are very welcome, Natalia Kovaleva
Real Estate Services Greece (RES-Grecee)
+7(903) 622 6616( Viber, Whats Up, Telegram)
+30 6939 663333
Greece, Thessaloniki, Vasileos Irakleiou 53