The local residential market is becoming increasingly attractive as a form of investment for both Greek and foreign buyers, as the gradual recovery of prices is generating expectations for future capital gains among those who have positioned themselves in the market in time.
Rental rates have also started rebounding after a brief hiatus in 2020, leading to expectations for a further growth of annual yields from home ownership.
A survey by Astons – a British company specializing in investment migration programs – has recorded the regions in Greece that are seeing the greatest investment interest, taking into account the returns offered. Across the country, average annual yields are estimated at 5.7%, as the average sale price comes to 129,780 euros per property and the average rental rate at €619 per month.
Halkidiki in central Macedonia has emerged as the champion of yields, fetching 21.3% in one year on average, with a median price tag of €142,128 per property and a mean rental rate of €2,520 per property per month.
Among the best-known tourism destinations in the world, the islands of the Cyclades also rank at the top, as the average annual returns come to almost 8%. The average sale price comes to €227,052 and the rent average at €1,518 per month. In Athens, the average yield amounts to 5.1% with sale prices at €164,674 and average rent standing at €702/month.
The Astons analysis points out that “the Greek real estate market is an extremely diverse one not only from a lifestyle offering but also in terms of the real estate market and the investment opportunities available.”
“For those looking to invest on a long-term basis through migration investment, for example, the location of choice will be very much focused on personal factors. However, those looking to invest commercially will need to consider the returns available, so a more developed region that benefits from high tourism footfall will be preferable,” said Astons Managing Director Arthur Sarkisian.
“It’s important to be realistic about why you want to invest. Often the lines between personal and professional benefits are blurred and this can be detrimental,” he warned.