July 14, 2024

Athens News

News in English from Greece

Residents of which 4 countries invest the largest sums in Attica real estate

Real estate in Greece, especially in Attica, continues to attract foreign buyers. It is no coincidence that in the first half of 2023, according to the latest data from the Bank of Greece, funds worth about 1.102 billion euros entered the domestic market from abroad, which is almost 40% more in percentage terms than in the same period last year.

After the start of the military conflict Israel with Hamas The domestic property market is dominated by concerns about how Israelis will live in the future, as they are one of the most popular nationalities among foreign property buyers in Greece and especially Attica.

It is too early to draw any firm conclusions, said Mr Lefteris Potamianos, president of the Attica Association of Real Estate Agents. However, according to him, against the backdrop of hostilities, two important contracts for the Athens real estate market were signed last week. One of them was signed by an Israeli, the second by a Lebanese. One of these contracts, worth one million euros, concerns the purchase of a plot of land in Neos Kosmos, where an apartment building will be built for commercial use.

At the same time, negotiations for the purchase of three different properties were frozen because potential Israeli buyers were mobilized into the IDF. However, in the medium to long term, it looks like the war could cause a new surge in demand for real estate.

As Mr. Spyros Papagiannakis, CEO of Mapei Hellas, a subsidiary of the Italian building materials giant, recently noted, the war could benefit construction activity as Israelis and Lebanese are showing great interest in residential property in Cyprus and Greece, seeking to find a quiet haven relatively close to home.

Residents of four countries dominate the Greek real estate market

About interest IsraeliThis is according to data from Spitogatos Insights on housing searches in the third quarter of 2023. In more detail, then in the center of Athens “first place” is taken Americans, the British are in second place, and the Israelis are in third. In the third quarter, the average sales price of houses in the center of Athens increased by 14.4% compared to 2022 and reached 2,000 euros per square meter.

Most inquiries for properties came from the US, as well as the southern suburbs of Attica, where prices in the third quarter were €3,611 per sqm, according to Spitogatos. m compared to 3,167 in the third quarter of 2022, recording a 14% increase.

In second place in the south of Athens are potential buyers from Great Britainthey are followed Germans. The same “order” in terms of nationalities was recorded in the second quarter of this year.

In the Piraeus area, where average house prices are at €2,000 per square meter, an increase of 14.7% compared to the third quarter of 2022, the UK comes out on top. In second place is the United States, in third place are the Germans.

As for the suburbs of Piraeus, where one of the largest increases in the average asking price of houses was recorded in the third quarter of 2023 compared to the same period last year, +23.2%, here The Americans showed the greatest interest, the British came in second place. Rounding out the top three Germans. In the suburbs of Piraeus, the average price of houses was 1,714 euros per sq.m. in the period July-September 2023. m.

Recently, the real estate network RE/MAX Hellas noted that Israel ranked among the top five most popular countries among foreign buyers in Greece, ranking 1st, followed by China and Germany in 2nd and 3rd place respectively.

4 categories of Israeli buyers

Based on the data obtained, potential buyers of real estate from Israel are divided into: four different categories.

To the first category include private investors who mainly want to purchase small apartments with a total cost of up to 100 thousand euros. These buyers are mainly interested in the central regions, seeking to achieve a net annual return of 5-6%, while in their country, as in other developed markets, the yield does not exceed 2-3%.

Small and medium-sized companies from Israel belong to second category. The budget in this case ranges from 500,000 to 5 million euros, and the profitability tends to be higher than 13%.

Large Israeli companies belong to third category. They typically invest amounts greater than €5 million and seek long-term profits. Hfourth category investors are real estate agents who come to Greece to expand their portfolio of residential properties that they can sell on the Israeli market.

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