Welcome
to the Greek property news that we have introduced on our website.
We feature here articles, news and statistics that relate (directly
or indirectly) to values, availability and legal framework of purchasing
property in Greece. We hope you will find this section useful, whether
you are a prospective buyer, an investor, a private owner or a member
of the press.
Greek
Property News 2007
Greece
increasing in popularity for British buyers
A
survey carried out by the popular magazine “A Place in the
Sun” (issue 37) shows Greece as the 6th most favourable country
for buying a property abroad. The island of Crete is by far the
most popular Greek destination for foreign buyers but other areas
are also in demand, especially by those who prefer to stay away
from popular holiday resorts. In addition, buy-to-let investors
are now discovering the potential of Greece’s large cities
for healthy returns from long term rentals.
Update
of official property values postponed for spring 2007
The
update of the government’s ‘Objective’ property
values, which govern the amount of tax buyers pay, has been postponed
for a few months. It was originally planned to take effect from
1st January 2007. It is a fact that in Greece, there is a large
gap between property market values and Objective values and the
government is aiming to gradually align the two. It has not been
announced by how much the values will increase but it is expected
that the largest increases will be for newly developed tourist areas
by the sea and on the islands and those on the outskirts of expanding
towns.
Old
buildings are given a chance in central Athens
Thankfully,
a reduction to the buildable area factor has made uneconomical the
demolition and re-development of old buildings in the centre of
Athens. As a result, many character buildings are now being renovated
instead of demolished.
Piraeus
is enjoying a property boom
Piraeus
and the surrounding areas have increased in popularity with new
buyers as property prices are quite affordable compared with Athens.
There is a good selection of new properties available – mostly
apartments. Seafront properties with view of the Saronic Gulf are
very sought after and sell at a premium.
Planned
Metro extensions create new hotspots in Athens and Thessaloniki
 The
extension of the Athens metro is right on schedule with new sections
becoming operational during 2007-2008 and the Piraeus line scheduled
for 2013. In the same year, it is expected that Phase 1 of the Thessaloniki
metro will also be ready. The budget for works in both cities is
2 billion euro. The metro has already had a major effect in Athens,
reducing traffic congestion and cutting down travel times. Properties
in areas near metro stations have seen average increases of 15-20%
with some areas reaching as much as 40%. There is great interest
by investors for properties near planned new stations.
New
ring road in Thessaloniki to be constructed below the sea bed
Construction
works for the new ring road that will connect the east and west
parts of the city, bypassing the centre, will start in Spring 2007.
It is estimated that the new road will reduce traffic in the centre
of Thessaloniki by 40-50% and reduce pollution by 35-40%. For the
most part, the road will be constructed below the sea bed. The project
is expected to be ready in four years’ time.
Demand
for high street shops pushes rents to new heights
 Lack
of available premises in the shopping centres of large Greek cities,
has resulted in very high rental prices. While this is favourable
for the property owners, retail businesses are struggling to find
suitable premises and estate agents report long waiting lists. The
situation is expected to last for several more years until enough
new shopping centres are developed. One of the reasons for the increased
demand is the entry into the Greek market of large foreign retail
chains, especially those in the clothes sector. Most chains are
planning to open additional branches as soon as suitable premises
are found. The lucrative rental market also means that commercial
premises in popular areas very seldom come to the market for sale.
New
Peloponnese motorway to start soon
 On
the final tendering process is the construction of the new motorway
that will start from Elefsina and reach Tsakonas in Messinia via
Korinth, Patra and Pyrgos. The project includes the construction
of 284 km of new motorway and the incorporation of 82 km of existing
roads. It is anticipated to be completed in six years time with
sections being delivered earlier. There will be 40 junctions and
10 service stations along the new route. The much used section Corinth
to Patra will have three lanes on each direction which will help
cut down travel time and make journeys safer.
Ionian
Motorway gets the green light
Agreement
was signed for the completion of the Ionian motorway with 159km
of new road and improvements on existing sections of the Athens-Thessaloniki
motorway. The Ionian motorway will start from Antirio and will join
the Egnantia motorway via Agrinio and Arta. The project is expected
to be completed in six years time.
Reduced
income tax for 2007
Personal
allowance has been increased to 12,000 euro for 2007, for a single
person, with further deductions for families, which means less tax
to pay for most people in Greece.
New
electricity meters for fairer charging
The
Greek electricity company, is updating their systems and residential
metering units to their 7.1 million customers. The new system will
not only reduce the company’s operational costs but will provide
incentives for using less electricity at peak times.
Second
home property market peaks near Greek ski resorts
It
looks like many Greeks, as well as foreign buyers, choose mountains
instead of seaside. As in Greece, one is never too far from the
sea, they probably aim to get the best of both worlds. New developments
are mushrooming up in the most popular areas like Pelion, Parnassos,
Trikala and Arkadia and there is a wide selection of properties
available from the basic to the very luxurious. Fortunately, many
of these areas are under preservation orders, so new developments
tend to be aesthetically pleasing and merging nicely with existing
local buildings.
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