Investing in housing in Athens is more profitable than in London, Berlin or Paris, analysts say. What indicators speak in favor of Greece?
According to statistics, the average investment period in foreign residential real estate is about five years, and such a long investment should be well calculated. One of the most difficult topics to analyze is whether the market is overheating and if there are signs of future problems on it. Here, professionals offer, first of all, to evaluate three positions: how much real estate is available for the population, is it profitable for people to buy housing, and is there an opportunity to receive rental income.
For example, one of the current old-world trends is investments in Greece. According to Nordea, up to 80% of the annual volume of foreign investment in the country's residential real estate is direct income from the eurozone. In particular, because of tourism, the short-term rental market is growing by 25% annually, bringing about 2 billion euros to property owners, and the government reduces taxes, including for real estate. Another important indicator is said by the managing partner of the international real estate broker Tranio Georgy Kachmazov.
“When we talk about foreign investment, we look at the ratio of the income of the local population to the cost per square meter. For example, in Athens, the ratio of local salary to the cost per square meter is such that a person can purchase this apartment in ten years of his salary. And, for example, in London or Berlin - for 20 years of their salaries. The ability of the local population to purchase an apartment is a certain foundation for investor safety. Terrain is simply always the foundation for pricing. ”
And in favor of Greece - the price to rent index. According to Tranio, in Athens it is 20.2 for the city center, 23.9 for the outskirts. That is, an investor who bought and began to rent an apartment in the center of Athens will be able to recapture its value in 20 years, and on the outskirts - in 24 years. For comparison, the central price to rent in London is about 34, in Paris - 39, in Berlin - 30. And the higher the price to rent, the more difficult it will be to resell the property. Proven by practice.
