On May 30, a seminar was held in Aurora Hotel in Moscow on "Investment
opportunities in the tourism & real estate sectors in Greece and the
program of the Greek Golden Visa", organized by the Greek Embassy in Russia
and the state organization for attracting investments “Enterprise Greece”.
The Greek Ambassador in Russia Mr. Andreas Friganas, and the
Plenipotentiary Minister of the Embassy for Trade and Economic Affairs Mr.
Athanasios Karapetsas, as well as professionals of the sector spoke about
the key growth factors of our country.
The Economy has stabilized
On top of its timeless competitive advantages such as strategic location
and natural resources, Greece is finally emerging from the long lasting
crisis, demonstrating economic growth, stability, a decrease in
unemployment and a significant increase in investment and foreign capital.
The level of confidence in the country has been restored. Ιn 2017, GDP
showed an increase of 1.5%, and this year, according to experts, the figure
will increase to 1.7%. The volume of direct investment by Russian
entrepreneurs amounted to $683 million, but in reality this figure is
higher, as many funds were transferred by Russian citizens and companies
from accounts in other countries. The volume of net foreign investment
increased by 29.4% last year to € 3.6 billion.
Other comparative advantages of Greece’s economy are its market
consolidation, the high competitive costs of running operations and a
general open mind to foreign direct investment which has become a top
priority for the country and its people (for instance, it is notable that
Greece has the largest percentage of professionals at a high level and at a
supportive level that speak at least one foreign language).
Prices of real estate are increasing
A strategy from the perspective of a visionary real estate buyer is
determined by how timely he can "enter" a particular market, taking
advantage of the actual situation. And today Greece is definitely THE
market to enter. In the next three years, prices in the real estate market
in Greece with the current economic indicators are expected to raise 20-25
%. This is an important factor for investors who are striving for a
profitable purchase: real estate prices in the country are still lower than
pre-crisis. At the same time, key directions already demonstrate a stable
increase in prices.
Development is an ongoing process
Foreign and local funds are investing in infrastructure works and private
tourist facilities.
- In 2016, the reconstruction of Piraeus commercial port (the third largest
in terms of container traffic in the Mediterranean - total amount of
redevelopment and privatization amounted to € 1.5 billion);
- the privatization of 14 local airports;
- the regeneration project of the former Athens airport area with its 3,5
km coast and its size being three times larger than Monaco!
- the purchase of the famous island of Scorpios by the Russian oligarch
Dmitry Rybolovlev - a luxurious resort with 22 villas are projected
(development plan of €120 million);
- the opening of the first Four Seasons hotel on the site of the legendary
Astir Palace Vouliagmeni on the Athenian Riviera (investment estimated at €
100 million to operate soon);
- the One & Only project on Kea Island. As Philip Zuber the president
of One & Only resorts has said “…. In Greece as the prospects for the
high end tourism market are inexhaustible.”
Opportunities for stable profit
Greece offers advantageous investment options not only for large
investments but also mid-size and even small investments. Net Foreign
Direct inflows are increasing significantly the last years. Many attractive
investment opportunities in areas such as agrifood, energy clean tech,
logistics, ICT, cultural and creative industries and real estate and
tourism where one of the consequences of the crisis led to the urging
necessity to renovate many small and medium-sized hotels in promising
locations. The same applies to single apartments or residential buildings
in big cities - Athens, Thessaloniki. An advantageous investment option is
the purchase in view of renovation and further management of such
facilities (direct management or tourist business under own management or
through a management company). Average annual profit on leasing is from 5%
to 9% per year.
The tourism sector shows record figures
Last year, Greece was visited by more 30 million tourists from different
countries and broke for the 5th year in a row its old time
record in tourist arrivals. Tourism is a central pillar of the Greek
economy. It accounts for an impressive 10% of total GDP. During 2016 only,
142 project files were submitted to the authorities for new and existing 4
or 5 stars hotel and 4 new large investments of Complex Tourist
Accommodation. Investments opportunities list in the sector or Tourism and
real estate are important in sectors such as medical tourism, privatization
of public assets etc … Thus, according to various “European Best
Destinations” organizations, Athens was recognized as the fourth most
attractive destination in Europe in 2017 by EBD (European Best Destinations
organization) and 60%. It is worth noting that it is in Athens that the
most dynamic real estate market in the country is observed: various sizes’
investors purchase apartments for renovation that are used all year round
since the best shopping and recreational areas of the country are met in
Athens.
Real estate drivers
- Historical data shows that real estate pays better than any other
investment in Greece
- New private and public projects under way
- New law for the construction of tourism residences together with 5*
tourism projects
- Golden visa program
- New law making it easier for non Greek to purchase real estate in
Greece’s boundaries and islands
- New law for Real Estate Investment Companies (REIC) with favorable
conditions
The most attractive and cheap "Golden Visa" program in Europe
The Greek "Golden Visa" program is by far the most attractive in Europe.
With purchase of a property of at least €250,000 the investor obtains
directly a residence permit in Greece and the EU, respectively. The program
"Golden Visa" allows the investor and his family (his/her parents, his/her
parents in law, children up to 21 and even extended to 24 years old) to
apply for residence permits and get it at once. Such permit gives the right
(not the obligation) to reside permanently in Greece and to travel with no
visa in all Shenghen countries and stay for 3 months per semester. Renewal
of the permit is issued and renewed after five years, provided that the
status of the owner of Greek real estate is preserved. If all the necessary
requirements are met, after seven years the foreign citizen can apply for
the citizenship of Greece.
Worth stating that the Golden Visa can also be obtained for Investment
Activity and Strategic Investments.
Russians confirm the benefit
In total, since the commencement of the "Golden Visa" program, 6612
residency permits have been issued to real estate owners and their
families. According to the number of applicants, Russians occupy the second
place after Chinese with 952 permits issued. As for the distribution by
regions, the most “busy” area are Piraeus (30%) and Athens (26%), Palini,
the eastern suburbs of Athens (21%), Poligiros, Central Macedonia (6%),
Chania, Crete (5%), Thessaloniki (5%). Russians invest the most in
Polygyros Central Makedonia (32%), Corfu (10%), Thessaloniki (10%), Palini
East Attica(10%), Hania (7), Piraeus (5%), Agios Nikolaos, Crete (4%),
Heraklion, Crete (3%), Corinth, Peloponnese (3%). This distribution
reflects very well the traditional preferences of Russian investors in
Halkidiki area and Thessaloniki and Southern suburbs of Attica.
