ARiadni Real Estate Blog

The coming months are crucial for the real estate market

22 July, 2020

Strong demand, which remains to be seen if it will be transformed into buying and selling operations, attracts the Greek real estate market due to the successful management of the pandemic crisis, combined with the low cost of living, compared to that of other major cities abroad. This finding comes not only from domestic, but also from foreign players who promote Greek properties internationally.

According to the British real estate promotion network Rightmove Overseas, in June Greece was in the top five countries (along with Spain, France, Portugal and Italy) that attracted the highest number of online searches.

Yesterday, the online edition of International Living magazine, published since 1979, had as its central topic an article entitled "Good life in Athens for less than $ 1,000 a month". The author of the text Lynn Roulo advertises the advantages of Greece, where the cost "is much lower than the total, for the most part, of the USA".

In the midst of the financial crisis, he bought two apartments near the Acropolis - the first of 25 sq.m. to 28 thousand euros-which it has through Airbnb "to boost its income".

Roulo may be ... particularly positively biased with Greece. He left the career of a certified auditor in San Francisco to settle in Greece in 2012, while uncertainty at the level of economy and country was hitting red.

Nevertheless, the majority, inside and outside the country, of those whose object is the sale and promotion of real estate in Greece certify that the demand has strengthened.

As Giorgos Petras, CEO of Engel & Völkers Greece, told Capital.gr, the demand for a second home is significantly higher, compared to the period before the coronavirus outbreak. The Deutsche Welle website also spoke in a recent report about the increased interest in Greek real estate by foreigners and Germans.

Undoubtedly, according to market participants, the turmoil caused by the pandemic in the domestic and global economy will hit the Greek real estate market as well. Therefore, the eyes are focused (and) on the number of deals that will take place following the increased demand.

The multimillionaires

Another tangible indication that the "brand" Greece has been upgraded is related to the status of tax resident (non-dom) which is in force only for the last seven months.

Under the non-dom, a multimillionaire has the possibility, if he transfers his tax residence in our country, to be taxed for all his global income, paying a flat tax of 100 thousand euros.

Prerequisite is to make an investment of at least 500 thousand euros either in real estate or intangible assets (securities, shares, etc.). To date, 21 applications have been submitted to the Tax Office for residents abroad - most of which in the two months March-April - while 18 have been approved.

In the dynamics that Greece has as a destination, the Ministry of Finance supports the expectations for the success of the initiative for granting incentives to foreign retirees who settle in Greece.

The next measure, according to the information that the government is considering launching, is the issuance of a passport in exchange for the implementation of a significant amount - in Cyprus it is placed at 2 million euros - of investment in Greece. However, very careful moves and the adoption of strict criteria are required in order to avoid cases of money laundering, as reported by the debtors.

By Dimitris Delevegos
dimitris.delevegos@capital.gr

capital.gr