In 2015 the domestic real estate market seemed to attract, re-after several years, the interest of foreign investors…
Indicatively, according to the survey of PriceWaterhooseCoopers, for the predictions of 2015 Athens, in a total of 28 european cities, had occupied the fifth place as to the investment and development prospects.
Then, the respondents, in the context of the research of PwC, head of investment groups such as Blackstone, BlackRock and BASF, noted that Greece has attracted investment interest, as the economy recover slightly.
Two years after
However, two years later, the situation has worsened: the Athens, greece as an investment destination is back in last place in the -expanded by two destinations – the ranking of 30 european cities and the european real estate industry is not thrilled with her, as stated in the research of PwC. And unlike in 2015, the fact that Greece got away 2016 the economic disaster that’s affected infinitesimally foreign investors, for whom the brand Greece means an economy in recession, and fear for the sustainability of the Greek debt.
As noted investor in research “the risk of exit from the euro remains to the country. Even if you thought of someone that does not exist, the risk remains on the tableâ€. Also, the refugee issue is a parameter that take serious account of the investors, causing insecurity and instability in the country.
Investments
However, there are respondents who consider that the future of the domestic real estate market is best, as the country has modernized.
Still, the survey lists two investments, the redevelopment of the Astir palace resort and the area of the former airport at Elliniko, which show that foreign investors have not lost completely their interest in the athenian real estate market.
However, these are the two unique high-value foreign investments, which were agreed three years ago, the 2014.
These two projects, the acquisition of 66% of Pangaea from the Invel and the improvement of growth rates of the Greek economy had, then, created a backdrop, fragile even, recovery which create investment opportunities for 2015. So, at that time, in January of 2015, the investment prospects of the Greek real estate market were reasonable, while today poor.
In accordance with the graph of the PwC, the outlook of Athens as an investment destination, for the period 2007-2017, found at the nadir of 2012 to the first half of 2013 and improved until the beginning of 2015 so it started gradually falling.
Therefore, with the works of development of real estate to stagnate -the use of Kassiopi in Corfu, was completed after four years, the second assessment may not be completed and the scenario of the drachma to remain foreign investment in the domestic real estate could be limited only to the REIC, which have a portfolio of properties that are leased to creditworthy tenants, and displays attractive returns. However, the επταπλασιασμός of taxation on their assets, and the doubling of the tax on real estate, has affected the particular industry.
As a result, in accordance with factors of the real estate market are limited foreign investments in the domestic real estate market are either luxury villas in the island destinations or business premises which are leased or purchased in the framework of the “golden visa†(residence for the purchase of a property worth 250,000 euros or more).
Source
Real estate: foreign investors are afraid of even the drachma
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