Real Estate Prospects in Southern Europe on the Rise in 2022

Real estate prospects in southern European capitals are seen improving in 2022, according to the latest report put together by PwC and Urban Land Institute, though volatility in the sector remains.

Based on a ranking of 31 European cities included in the annual “Emerging Trends in Real Estate – Road to Recovery” report, the outlook in Spain, Italy and Greece improved in the last year. Topping the list is London, followed by Paris and Berlin.

“Madrid has moved up two places to sixth, with a score that now rivals the leading German cities. Interviewees point out that it offers good opportunities across sectors, such as residential and logistics, as well as a strong office market,” says the report.

Rome climbed to position number 21 (from 23rd) and Athens advanced to 23rd place (from 28th place).

On a second-ranking assessing expected changes in rental and capital values in 2022, Athens took first place.

“Relatively few survey participants are active in the Athens market, but they believe the city offers some of the strongest growth prospects anywhere in Europe. This relates not just to the potential recovery of tourism, but also to Greece’s relative political stability compared with Turkey,” says PwC and ULI.

The report goes on to cite one private equity investor who says: “Greece, for the first time in decades, has a stable, pro-business government. This stability is set against a contrasting situation in Turkey.”

In terms of broader property trends in Europe, the annual review points out that there is a clear upturn in confidence but that volatility and uncertainty continue amidst high inflation and supply chain problems.

“The biggest current uncertainty relates to inflation and supply chains, impacting mostly construction prices and delivery schedules, just at a time when the industry wants to resume delayed developments or advance repurposing initiatives,” it says.

“As a consequence, we are seeing strong sentiment swings, as the industry struggles to interpret the potential impact of supply chain disruptions, surging energy costs and labor shortages on real estate, and how long these issues might last,” it adds.

This article was first published here. 

For more Real Estate News & Views on Greece and Europe’s South, head to The Greek Guru.

*Image courtesy of Sotheby’s

Pandemic Dampens Real Estate in Greece but Holiday Homes Still Shine  

The Covid-19 pandemic has pulled the brake on Greece’s real estate market, freezing deals and prices on housing, but pockets of demand have emerged from foreign buyers looking at property on Greek soil.

Interest from investors located mainly in European countries, led by UK nationals, has increased in recent months as they search for property either for investment purposes or to be used as a holiday home, real estate agents report.

Demand has been focusing mostly on homes on the Athens Riviera, the southern beach stretch running from Piraeus to Sounio, as well as islands such as Mykonos, Crete, Corfu, and Paros.

Homes worth 7 to 10 million euros are on investor radars but the majority of enquiries concern properties in the range of 500,000 to 1.5 million euros, Christos Mourdoukoutas, sales analyst at Algean Property, tells IN+SIGHTS GREECE.

“They are mainly looking for a place in a prime location that is close to international airports – popular holiday destinations and the Athenian Riviera – which could offer a good yield too, since their interest is usually related with investment purposes,” he says.

Growth in Greece’s real estate prices had been growing steadily, recovering from a ten-year slump, when the pandemic hit. Data from the Bank of Greece, the country’s central bank, showed that prices last year jumped 7.3 percent and then by an annual pace of 6.9 percent in the first three months of this year.

Since then, local buyers and home owners have adopted a wait-and-see stance due to the uncertainty caused by the pandemic and the recession at hand. Insights Greece - Pandemic Dampens Real Estate in Greece but Holiday Homes Still Shine  

Due to travel restrictions, interest in buying Greek assets comes mostly from nearby European nations as investors from further away are still having a hard time getting to the country. This is a trend seen globally, with real estate investors currently preferring their own regions due to travel restrictions.

Market officials say that buyers from China, who have been a main source of foreign investment in Greek homes in recent years, are still showing strong interest in Greek homes.

A key reason why buyers remain keen on Greece is that prices in the country remain well below levels seen in other European countries. Additionally, yields offered on homes on islands, such as Mykonos, exceed the 8 percent mark, ranking among the highest in Europe, according to data provided by Algean Property.

The country’s successful handling of the pandemic over the lockown period earlier this year boosted its appeal as a safe destination, with homes offering privacy and large areas sought after.

“We see that more than half of those interested have accelerated their decisions and want to invest in a private vacation and place for relaxation. For many, the pandemic has led to a review of their priorities, resulting in them speeding up decisions to leave their jobs and are now seek to buy a luxury property for the rest of their lives,” Savvas Savvaidis, president and CEO of Greece Sotheby’s International Realty told Kathimerini.

In March, Sotheby’s handled one of the biggest deals to take place in the residential market in Greece in recent years. An Australian business owner purchased a villa in Corfu for 12 million euros, with the sale going ahead normally despite the lockdown period. It is Sotheby’s third sale above 10 million euros in Greece in the last year.

*Images courtesy of  Sotheby’s International Realty