Land prices in Greece invite to buy
Property prices in Greece remain low due to the economic crisis. Property ownership in Greece is widespread - about 80 % of properties are owner-occupied. However, despite the large number of owner-occupied homes, there are still plenty of opportunities to snag a little piece of paradise as your own.
If you're ready to take the plunge on Hellenic property, this article will guide you through everything you need to know about buying a house or land in Greece.
What is the real estate market like in Greece?
It is no secret that the Greek economy remains in a poor state. However, the economy is growing slowly. Economic growth of 3.1% is expected for 2018.
The real estate market, however, is recovering much more slowly. Property prices have fallen by almost half since their peak in 2008, although the ongoing downward trend appears to be slowing. According to the Bank of Greece, the reported price decline of 0.46% was actually an increase of 0.03% when adjusted for inflation. However, the number of property transactions remains low, with a decline of 72% since 2008.
A closer look reveals that the housing market is on an upward trend, although prices are expected to increase by only 0.6% per year. While the allure of cheap property can be tempting, it is important to remember that the state of the economy still makes property investment risky.
To enjoy life on the Aegean islands, however, now is a good time to buy property at bargain prices.
Can foreigners buy real estate in Greece?
For EU citizens, there are almost no restrictions on buying property on the islands.
How high are land prices in Greece?
The cost of property in Greece is highly dependent on the type of property and where you want to buy. You can buy a two-bedroom flat in Thessaloniki for as little as EUR 20,000, a two-bedroom flat in Athens costs on average EUR 250,000, and an exclusive beachfront property with four bedrooms and a private pool in Mykonos is currently asking EUR 750,000. The average price for a square metre of living space is listed by the Global Property Guide at EUR 2,846, which is significantly cheaper than in other European countries. (https://www.globalpropertyguide.com/Europe/Greece/...)
How do I find a property in Greece?
Most buyers use an estate agent for their search. Many opt for an agent in their home country, who then works with an agent in Greece. Services include legal advice, insurance, as well as arranging builders. It is also possible to find an agent who will take care of the construction work on your behalf, including supervising the work on site.
Just like anywhere else in the world, you may encounter scammers when searching for property in Greece. While the nature of the scams change every day, there are a few things to keep in mind:
Never transfer money or a deposit before you have met the seller, seen the property or have a working set of keys in your hands.
Request a property inspection.
Look closely at the property. The estate agent should provide you with an inspection document.
Make sure that the seller has the right to sell the property, i.e. that they are the owner of the property.
Check your rights to the property. If it is designated as alpha by the Greek government (a historic house), you may have little or no ability to make alterations or additions.
Make sure that the seller has the right to sell the property.
Condition of the property
Realistically, buying a house in Greece should be done with great caution. As many properties are considered historic, they require rigorous maintenance and many modernisations. Many of these measures have been postponed because of the economic crisis.
You should therefore bring your own real estate expert to the viewing and walk through the house with him or her so that you can get an idea of the problems and the work that needs to be done.
How do I choose the right property?
The most sought after type of property in Greece is villas. But there are other options that may serve you better in the long run or cost less.
Apartments, for example, can offer sweeping views of the sea and beach, but are significantly cheaper.
There is no type of property you can't find in Greece. There are modern houses, historic villas, townhouses, flats and plots of land.
What are the steps to buying a property as a foreigner?
Buying property in Greece is a fairly simple process, even for a foreigner.
1. Decide where you want to buy. While searching online can give you a good idea of the property itself, it can be difficult to get a real feel for the area without having been there. Therefore, it is a good idea to decide on the area in advance and then take a trip to Greece.
2. Use an estate agent. If you prefer to search yourself, then search online.
3. Choose your property and make an offer to the seller.
If it is accepted...
4. Get a lawyer. In Greece it is compulsory to get a lawyer if the house costs more than 12,000 euros in rural areas or 30,000 euros in urban areas. It is unlikely that you will buy a house for less money. Therefore, it is a good idea to look for a lawyer early on.
5. Arrange a notary appointment. As in Germany, notarisation is mandatory for selling a property in Greece. Make sure all the documents are in order before you go to the notary.
6. Pay the taxes. The buyer pays the real estate transfer tax in Greece, which is 3% since 2014. But be careful - without an AFM, which is the Greek national insurance number, this will not be possible. You can get the number by submitting the tax forms M1 and M7.
How do down payments, mortgages and bank loans work?
If you are looking for a mortgage or a property loan, it will be difficult in Greece. Banks in the country have stopped many property loans because of the numerous bad mortgages.
While it is technically possible for a foreigner to get a mortgage in Greece, it is probably better if you work with your local bank.
Normally, you will be asked to pay a deposit of 10% of the total value of the property to reserve it.
What taxes and fees do I have to pay?
To buy property in Greece, you will incur the following costs:
Broker fees: 2 - 5%
Notary fees: 1 - 2% + 24% VAT
Lawyer fees: 0.40 - 1% + 24% VAT
Public registration fees: 0.3 - 0.5% + 24% VAT.
With that, you are ready to become a property owner in Greece! Good luck with your property purchase in Greece!