Buying property in Athens has always been a good investment because real estate there is in high demand. Not only is the city the financial and administrative heart of Greece, but it is also a very popular tourist destination.
Platforms such as AirBnb have become extremely popular with tourists visiting Athens, which is why more and more investors are looking for apartments and a variations of best luxury villas in Greece that they can turn into short-term rental properties and list them on such platforms as soon as possible. Those properties used to be dirt cheap; however, the high demand is starting to drive prices upwards again.
There are however some properties in Athens that remain cheap: luxury properties. Since all investors seem to be interested in urban apartments, demand for luxurious villas in the suburbs of Athens seems to be stagnant, which is why the prices are still relatively low. Why are Athens villas so cheap though? Let’s find out.
The economic crisis
In order to understand why real estate in Athens and Greece in general is so cheap nowadays, one must first understand the reasons behind the financial crisis that has the small European nation in its throes for about a decade now. After a lot of years of economic growth and prosperity the global economic crisis which started in 2008 made its way to Europe and Greece has unable to repay the amount of money that its banks had borrowed from foreign banks. This resulted in several bailout deals that forced the Greek government to cut back on spending and impose some pretty sever austerity measures.
Owning property is of the utmost importance for Greeks, which is why they kept buying real estate during the so called “decade of prosperity”. Once the crisis came about, most of them were forced to default on their loans and their houses were seized by the banks, or they were forced to sell their properties in order to get some liquidity and since “beggars can be choosers” they did so in really low prices. One would think that only properties owned by middle class families were affected by the crisis, but that’s not the case. As it turns out, a lot of successful Geek businessmen owed their success to huge loans, so they too were forced to part with expensive assets and properties in order to make ends meet.
An untapped goldmine
The number of visitors to Athens keeps increasing almost exponentially in a yearly basis, which is why apartments are selling like hot cakes. Most of the tourists visiting Athens are middle-income families or young tourists travelling on a budget, which makes investing in an apartment turned short-term rental property a very prudent investment. Since the number of high value tourists visiting and staying in the city isn’t as large, almost all investors seem to have set their sights set on “budget” apartments. Since demand for luxury properties isn’t very high, their prices have remained very cheap. Seeing as the number of high value tourists visiting Athens is quite large and is increasing, luxury properties will soon become a hot commodity, which is why one should invest now.
The prices are only going to get higher
Since the market for apartments and cheap rental properties is starting to become saturated, it stands to reason that investors are going to start looking towards the luxury market and the demand for villas will increase, which in turn will cause their prices to skyrocket. This means that if you buy now that the prices are still low, you could just rent your property and make back the money you put into it in a few years, or wait for the prices to go up and sell it for a quick, easy and very large profit. It’s a win-win kind of deal any way you look at it!