Greek Real Estate Market 2020 | 2021, An Overview

According to the International Monetary Fund, (IMF), the Greek economy witnessed an initial emerge from recession in 2017 – increasing the GDP by 1.5% in that year and by 1.9% per annum in 2018 and 2019. Nevertheless, the Greek economy is thought to have declined by 9% in 2020, mostly due to the global and great impact of the COVID-19 pandemic, in 2020, the Greek economy was struck by closed borders and a pandemic, the main decrease in income came from limited or restricted tourism, a major sector for the country. As the country gradually opened its border to covid-free foreign travels, on May 14th of 2021, the economy through the tourism sector has been somewhat revived, where the European Commission predicted a GDP growth for Greece, up to 4.5% in 2021 and 6% in 2022.

Economic Forcast as seen on the European Commission Website

Greek Property Market:

Throughout the previous year, apartment unit prices increased by an average annual rate of 4.3%, compared to an increase of 7% in 2019. Prices continued climbing in 2020 even though the economy shrunk by 8% due to the pandemic. Data from the Bank of Greece demonstrate that property prices jumped to 3.2% in the first quarter of the year from 2.4 % in the last quarter of 2020. It is essential to note that market administrators indicate that purchasing interest originates mainly from foreigners. Acquisition activity is expected to increase when normal travel resumes and a major factor is the Greek Golden Visa program as a benefit that has slowly altered the appeal for foreign investors.

Construction:

According to the Hellenic Statistical Authority, the construction movement remained consistent despite the pandemic. During the first 3 quarters of 2020, the issued permits increased by 15%, the consistency follows the initiatives of the current government, encouraging the construction of new projects, the main reform is the suspension of the 24% VAT on new properties built after January 1, 2006, which is still in effect, and it will be valid until December 31, 2022.

Golden Visa through Real Estate Investments:

The attractiveness of the Greek real estate market is growing, being one of the most viable and affordable programs in Europe. By investing a minimum of €250,000, an investor can become a permanent resident of Greece, including his family members. The Greek Golden Visa enables visa-free travel to all countries within the Schengen zone. Download our Golden Visa Handbook.


How to invest in Greece, if another lockdown and border closer was ordered by the Greek government?

In December 2020, following an amendment of the Golden Visa Law, enacted on 23/12/2020, for the first time, an investor could apply for a Golden Visa completely remotely, without having to visit Greece. At the same time, it is possible to receive the "blue certificate" by courier services, which is equal to a temporary residence permit.

After the investor signs a Power of Attorney (PoA) at their local Greek Consulate, this application can be submitted by a local law firm. The same Power of Attorney can, of course, be used for the fully remote conclusion of the investment itself, namely the purchase of real estate with a minimum value of 250,000 EUR or the realization of an alternative investment option, such as a term deposit bank account with a minimum value of 400,000 EUR.

That was not new; what was amended was the ability to use this Power of Attorney for the Golden Visa application itself, without a prior entry into Greece. Read all the details in our article: A Fully Remore Golden Visa Application

Timeline of Remote Golden Visa Application

Sources:

https://www.bankofgreece.gr/en/statistics/real-estate-market/

https://www.statistics.gr/en/statistics/-/publication/SOP03/-

https://www.imf.org/en/Publications/WEO/weo-database/2020/October/select-countries?grp=995&sg=All-countries/Advanced-economies/Euro-area


Greek Golden Visa Through Property Investments in Greece

If you are interested to invest in the Greek real estate market, or should you be looking for your future Greek home, our firm can process your purchase and Golden Visa application, as we have done with hundreds of satisfied families, contact our team at legal@varnavas.gr and you will be briefed about your remote Golden Visa process. Alternatively, you may fill in our contact form.

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