Is it time to be selling property in Greece fast when you still can? Has the economic crisis in Greece become worse, or can the situation be salvaged as yet? We have got some good news and bad news for you from Greece.
First, the good news. There is a real demand for properties in Greece from foreign investors from emerging nations such as China and Russia. A lot of wealthy individuals from the Middle East are also looking to buy property here, especially from countries such as Israel, Egypt, Lebanon and Iraq.
The demand from traditional buyers of property here, such as Germans, Scandinavians, Belgians, Swiss and Britons remains as strong as ever. There is a large Greek expat community in the United States, Canada, UK and Australia and for many, buying a home in Greece is just the perfect way to retain their ties to the country.
The Bank of Greece has come out with a report that indicates that foreign investors purchase properties worth 250 million Euros in the country, up from 186 million Euros in 186 million. This is certainly a major improvement.
The Golden Visa program introduced by Greece, which provides residency permits and the right to travel to any country in the Eurozone for non-EU investors that buy properties worth 250,000 Euros here, has been quite successful.
A number of foreign buyers from countries such as China, Russia, and the Middle East have availed of this option.
In fact, the Greek Golden Visa has found a plenty of takers from a country that has an economic crisis that is even more severe than the one in Greece – Venezuela. Many cash rich Venezuelans who are desperate to get out of their country and escape the crazy socialist policies of the government have found a home in Greece.
Now, for the bad news. The property market in Greece was the only one in the European Union that witnessed a fall in home prices in the last quarter of last year, according to Eurostat.
The country is on the verge of defaulting on a major loan payment of $7.6 billion to be made to its international creditors, such as the European Central Bank, International Monetary Fund and the World Bank.
The government has been trying a lot of things to raise revenue to pay off its debt, and this means raising property taxes for one and all in the country. The Greeks pay an exorbitant property tax rate, which is so high that a lot of people are forced to sell their home for this reason, unable to pay the tax.
Certainly there are major problems in Greece. Because of the sheer number of people that are selling overseas property quickly here, there is a glut of resale properties on the market, which brings down the price for everyone. This is not good news for those who are looking to sell property in Greece quickly.