If you compare the prices of properties in Greek tourist resorts near the sea will not believe that this is a country with an unemployment rate of over 28%, with reductions in monthly income and inability of many to serve their mortgages.
And yet, George Petras, head of real estate agency Engels & Völkers in Rhodes, speaks for selling prices of 13,000 Euros per square meter for holiday homes on the island, when the housing market in cities has been reduced.
The high prices for villas overlooking the sea
in Greece is an example of how great is the difference between simple Greek property owners with the wealthy foreigners coming to invest in the Greek real estate market. While the prices in the metropolis have plummeted, in tourist resorts have stayed at the same level and some of them may have increased. So anyone who is looking for opportunities in Greece he will be disappointed. Christian Sairer, head of real estate agency Global Immobilien Service GIS in Augsburg, specialized in real estate in Greece, agrees that the crisis in the summer real estate market is in the past. "At the zenith of the crisis the villas overlooking the sea cost 15% to 20% less than in 2007. Meanwhile, prices have risen. Buyers are coming back en masse. Since last February we experience a real "boom"."
"Buyers from the Middle East"
Apart from the British, Germans, Dutch, Austrians and Swiss, the Greek real estate market has opened up for buyers from Middle East who are looking for a summer home in Greece. John Ploumis, a representative of a foreign real estate agency in Greece, says that many wealthy Egyptians, Israelis and Lebanese are looking for a house in Greece as secure refuge from the crises in their countries. From Germany come many buyers for opportunities in the Peloponnese, on the coast of Thessaly, or in one of the 1400 islands, but most of them are leaving disappointed, without finding low prices. Another category of German buyers are doctors, lawyers and small and medium entrepreneurs. "They are looking for villas considering it is a good investment to increase their capital," says the broker Christian Sairer.
The advantage of Greece towards Spain or Portugal is that its coasts are not built with huge blocks of concrete housing. The other advantage of Greece is that the prices for land acquisition are lower than all other Mediterranean countries. The Greek government supports this demand by giving residence permit of five years with a possible extension to the purchasers of property worth more than 250,000 Euros. Also to attract buyers, it reduced the property purchase tax from 10% to 3%, which contributes to the rocketing market prices.
Big drawback is the lack of land registry
The German newspaper also gives instructions on the economics of those who want to buy property in Greece, and suggests these properties to be close to Athens, Thessaloniki and Crete where there are daily flights to Germany also in winter.