The answer is a resounding yes. Actually, we can go as far as to say that a real estate investment in the Peloponnese today is more interesting than ever before, even if we are again facing a new international, or perhaps mainly European, crisis.
It is certainly interesting to examine the progression of the real estate market, which is subjected to almost opposite dynamics.
On one hand, rising construction costs, rising prices of all goods and services lead to the shrinking of household income, and gradually rising lending rates weaken the purchasing power in the market.
On the other hand, the reduced housing supply and the increase in construction costs do not allow for a significant reduction in real estate prices. Also, the constant weakening of the value of money, due to inflation, increases the buying demand of real estate, due to the fear of losing the value of one’s savings.
European citizens of Western countries face a similar situation, but they also have to deal with something else, and this is none other than the increase in energy costs. Clearly, this is an issue Greek citizens have to face as well, but with a very important difference; in some countries, such as for example in the German-speaking countries of Europe, winter lasts 4 times longer than ours, with lower temperatures and much less sunshine. Therefore, the energy needs of a household in Greece are significantly lower than in a Western European country.
A very convincing example of this is the fact that if a foreigner buys a house of an average family in the Peloponnese or more specifically in Argolis or Messenia and installs a photovoltaic park at a cost of €20,000, they can achieve an electricity sufficiency in rates from 50% up to 70%.
Beyond the financial gain, there is also the fact that the quality of life in Greece is better. The fact that in Greece, one can enjoy the sun and the sea almost all year long, combined with a Mediterranean diet can be a very important asset that may be almost self–evident for us, but it is not the case for the inhabitants of many Western European countries.
Another factor that acts positively in the decision of foreign buyers to acquire a property in Greece, apart from energy costs, is the cost of living. In this field, we may be more expensive in terms of telecommunications and in some food products compared to the avg. prices in Europe, but in general, life is cheaper in Greece than in the Western countries of Europe. According to calculations by the German Statistical Authority in September 2021, the avg. of product prices in Greece was 23% lower compared with Germany.
Tax-wise, Greece also offers a very competitive advantage over other Southern countries, because any non-Greek pensioner who chooses Greece as their tax domicile, will have a fixed tax rate of 7%. Specifically, for the next 15 years their income will be taxed at a rate of 7%, and this concerns both their pension and any other income they may be receiving abroad, provided that they have a permanent residence in Greece, either rented or bought.
Finally, another financial factor is the fact that real estate prices in Greece, compared to real estate prices abroad, are considerably lower according to Eurostat. You can find more information about this in a previous article on the blog of www.skourasrealestate.gr. As a result, Greek real estate properties and more specifically, real estate properties in the Peloponnese remain quite more competitive, compared to those of Western countries.
Of course, generalizations do not represent all the different real estate markets of the entire country, and obviously, there are exceptions, but we do not dwell on them.
Therefore, for a retired, non-Greek, European citizen or a worker, who is able to work remotely, our country must definitely be a worthy choice for an investment, through either renting or buying a real estate property.