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Greece: Investment Potential 2008

The signs are good for property investment in Greece. The 2004 Olympics which took place in Athens meant massive regeneration investment not just in the capital but in the country as a whole. This in turn drove tourism growth up, with the sector now contributing around 15% of the country’s GDP. With its growing economy, increasing tourism figures and major infrastructure improvements already in place, Greece is the perfect property investment location.

Massive Tourism Growth

The Greek tourist industry received a massive boost from the 2004 Olympics in Athens and its popularity as a tourist destination has continued to grow ever since. The country aims to become one of the world’s top five tourist destinations over the next few years and the Greek National Statistics Office reported an 8.63% rise in tourist arrivals in 2006, with figures for 2007 and 2008 expected to continue that upward trend. Athens, Thessaloniki, Kavala, Rhodes and Crete have shown the strongest growth.

Greece – A Great Property Investment

The Greek government has brought about steady economic improvements, bringing down unemployment rates and taxation levels and reducing red tape to create a favourable property investment environment in Greece. UK investors make up 80% of Greece’s foreign property purchasers. According to government statistics, property prices increased by 7% year-on-year during the early part of 2007, with prices for apartments in Athens increasing by 12% while other major cities saw around 15% growth.

Good Rental Yields

Greece enjoys relatively low property prices, a strong mortgage market and a modernised tax system all of which make it a very attractive investment. Athens in particular, is a buy-let hotspot with rental yields in Athens of between 5.5% and 6.9% and properties in the suburbs averaging around 6.5%.