Greece Shows Signs of Recovery in the Property Market and Economy

Greece Shows Signs of Recovery in the Property Market and Economy

Prime Minister Kyriakos Mitsotakis has recently indicated the promising economy in a meeting. He said: “I am very optimistic οver the prospects of the Greek economy, and because we’ve never stopped implementing reforms during the COVID-19 pandemic, we’re now able to take advantage of the post-pandemic recovery”. He has also emphasized how it has been important to take good measures in these uncertain times. 

The recovery reveals itself in the property market as well. The Golden Visa program is known to have contributed much to this improvement.

Property Prices Have Been Rising 

The bank of Greece indicates that the housing index in Greece was at its top in 2008. Following the economic crisis, it never saw an increase until 2017. Starting from 2018, the index began to increase again. The bailout of 2018 and other investments contributed to this improvement. The rate still hasn’t reached the point in 2008. However, Greek officials are pointing out a positive outlook on the future of the economy. 

One can see this change in the capital city Athens. Year on year, property prices increased 5,4 percent in Athens. It owes this increase especially to the Golden Visa program and housing platforms such as Airbnb. The Golden Visa program has attracted thousands of euros into the country as well. Being an attraction for the international community has also contributed to this recovery. 

According to the Central Bank’s data, the pandemic has resulted in an 8.2 percent decline in the economy. However, the real estate market showed signs of recovery in the first months of 2021. According to the Bank of Greece, in the first quarter of the year, apartment prices increased 3.2 percent. Compared to the same period in the last year, there has been an increase. Also, it rose from an increase of 2.3 percent in the fourth quarter. 

It’s also important to note that the homeownership rate in Greece is 73.5 percent. Comparatively, The Eurozone average is 66 percent, says the European Union statistics.

Greece Will Start To Welcome Tourists Very Soon

In an attempt to revive the economic recovery, Greece is preparing to welcome foreigners soon. The government stated that all shots of vaccines will be recognized. For the foreigners to enter the country, they:

  • Need to have been vaccinated, 
  • Have tested negative, 
  • Must indicate they have antibodies following the infection.

It’s also likely that random testing will be available soon. 

Greece will also cancel some other lockdown measures. This includes canceling the ban on travel on the mainland. The islands will also be available for locals in some conditions. They can visit the islands if they show proof of vaccination or a negative test. 

A Positive Outlook on the Economy 

Like the prime minister, Paolo Gentiloni, European Commissioner for Economy, notes promising signs of growth in the economy. He noted that in 2021, a 4.1 percent, and in 2022, a 6 percent growth rate is expected. He adds that “Recovery is no longer a mirage. It’s underway. . . After a weak start to the year, we project strong growth in both 2021 and 2022.”

The executive committee of the EU points to the future positive impact of vaccination on the EU countries. Also, the 27 member EU countries have recovery measures that amount to around €4.8 trillion.