Buyers bid farewell to Greek tragedy
Buyers bid farewell to Greek tragedy in August 2013, as the country joined the world’s top 10 property destinations for the first time in 11 months. America’s recovering real estate was the most popular on TheMoveChannel.com, accounting for more than one in five enquiries, but rising confidence in the eurozone saw Greece build momentum of its own, as the country received its highest ever volume of attention.
Greece’s great rebound marks the continued rising appeal of European real estate, even as the US dominates demand.
American property was number one on TheMoveChannel.com for eight months in a row from October 2012 until June 2013, when Spain seized the spotlight with a 30 per cent share of enquiries. That interest increased again in July but plummeted to just 7.5 per cent in August, as buyers rushed to invest in the rising values of US real estate. Indeed, America accounted for 27.26 per cent of all enquiries on TheMoveChannel.com in August, surpassing the country’s previous record of 25.95 per cent.
Nonetheless, buyers remain confident in Europe’s economy. The eurozone accounted for four of top five property destinations in August for the second time in 2013. Spain slid into second place, but demand for Portuguese property trebled across the three months to August, enough to hold on to the number three slot. Italy’s share of enquiries doubled over the same period, climbing into fifth.
The eurozone’s biggest winner, though, was Greece, which leapt 10 places up the chart into eighth – the first time it has been in the top 10 since September 2012. Buyers continue to have wider favourites, from Turkey, which held on to sixth place, to Brazil in seventh. Cape Verde also climbed into the top 10 for the fourth time in 2013, but Greece bounced back even higher. Greek property accounted for 3.26 per cent of all leads on TheMoveChannel.com, a record for the country.
Katerina Kochraki of Greek construction company Action Constructing attributes the sudden growth in Greece’s popularity to lowering house prices:
“Greece was always a favourite destination for people from all over the world thanks to the sunny weather, beautiful clean beaches, culture, Mediterranean food and Greeks themselves, who are always friendly and hospitable.
“Then the economic crisis hit. All the media were talking about how difficult things are in Greece. But Greeks don’t give up! After four years of chaos, we found some ways to recover. We decided to reduce our property prices but without reducing the quality of construction. People from other countries continue to love Greece and they are very interested in being able to have their dream home there without paying a fortune.”
The Greek market has also been boosted by the introduction of residency laws for non-EU investors, which offers five years of residence to investors who spend at least €250,000 on Greek real estate. Indeed, Greece offered its first residency permit to a Chinese man this month for buying a property in Attica.
TheMoveChannel.com Director Dan Johnson comments: “With the market recovery in full swing, US real estate is the most attractive in the world right now. Rising values have boosted investor confidence, while also driving buyers to secure strong rental yields before prices get too high.
“In Europe, though, it is the opposite story: falling values are driving demand, with bargain hunters returning to old favourites where places in the sun are no longer out of their reach. Spain and Portugal have both seen demand surge, helped by recent announcements of residency laws designed to attract non-EU buyers. Greece now looks set to follow suit.”
