Luxury asset demand returns
Since the summer, a renewed demand for luxury homes by foreign investors and buyers has been discerned, both in Attica and at popular holidays resorts around Greece.
According to the Athens bureau of Berkshire Hathaway HomeServices (BHHS), “there is a momentum that is strong and clear in the southern suburbs of Athens, the Athens Riviera, and has now started being reflected also in the other areas traditionally associated with luxurious residences, such as Kolonaki, Filothei, Palaio Psychico and Kifissia/Ekali.”
It adds that, “at the same time, demand for lower-cost modern luxury homes is clearly rising in districts such as Palaio Falirio, Alimos, Elliniko, Vrilissia, Maroussi, Halandri, Agia Paraskevi and Holargos,” noting that demand in these areas mainly comprises Greek buyers.
Nevertheless, the main source of demand is Asia. The budgets available are often determined by the supply, the asset on offer, and mainly concern homes on the Athens Riviera, in the northern suburbs of Athens and on the islands. Of course, foreign investors do not have endless liquidity: “Buyers do not waste money. However, they trust the major international companies to make sure they purchase at the right price and make conscious choices given that they have a multitude of options across the Mediterranean – besides Greece – in Spain, southern France, Italy and Cyprus.”
BHHS notes there are various buyer profiles: There are those who go in for acquiring very expensive properties in the southern suburbs of Athens and on the most popular Greek islands. “They mostly originate from the US and the Middle East,” BHHS says. Then there are the buyers focused on acquiring a residence permit through the Golden Visa program. In their majority they come from China, Southeast Asia, the Middle East, Russia and Turkey. They are mostly interested in a good investment, targeting capital gains from the expected increase in asset values. A third category of buyers comes mainly from Northern Europe, as well as France, Austria and Italy. They primarily eye income investments and secondarily capital gains, hence they buy based on rates concerning short- or longterm leasing.