The recent health crisis was a major shock to the real estate market of Greece and Crete in particular. Uncertainties and risks about the duration of the current health crisis and its impact on the economy are very high and extremely difficult to predict.
However, countries like Greece with successful anti-pandemic programmes and Golden Visa schemes are more likely to be the focus of property investors once the current crisis is over and Crete should be (again) one of the most promising markets in Europe.
One division of the property market in Chania which is going to be a fundamental factor of the future, especially within the next 10 years, is the private rented sector (PRS). Currently, around the half of homes in Chania are rented, with that figure expected to grow by 20-30 per cent over the next decade. As more and more people wish to spend several months in Chania, the need for high-quality rented housing (villas, luxurious apartments) will continue to grow so build-to-rent (BTR) property is going to play a significant role in supplying commercial-investment properties.
Since 1 January 2017 the income from the renting of immovable property in the context of the sharing economy is taxed in accordance with the provisions of Article 39A of Law 4172/2013. Specifically for every tax year, income from the short-term lease of real estate in the sharing economy will be declared separately and on a centralized basis on the income tax return forms of the tax year concerned.
Within the tourist & logistics sector, which in Crete remains blisteringly hot, foreign investors and investment funds are racing to build economically viable real estate assets and services that can handle same-day fulfillment and high investment returns as efficiently as possible.
Innovative real estate services, property valuations and access to local real estate data continue to change what is feasible, reasonable and trustworthy.
Within Chania real estate market, the luxury property sector has seen revival in 2017 and 2018 and continue to thrive by offering a combination of choice, magnificent design options and leisure services.
Ambitious real estate prospects
ARENCORES predicts that the amount of money pumped into Chania real estate market will increase by around 20-30% in the next couple of years. Many buyers and investors have underallocated in Greece due to concerns of economic slowdown; with clear signs of economic stabilisation, investors are expected to return. Chania will also continue to attract solid interest from all types of buyers because of attractive yields and good real estate opportunities. 56%
of the most attractive small sized properties are located in the outskirts of Chania.
Focus on small sized properties
The results of our research show that there are significant opportunities on small-sized plots and houses. Additionally our research shows that a growing number of buyers from Scandinavia, Israel and Germany have been interested in Cretan properties, capitalizing on lower prices and higher return of investment compared to other real estate markets in Greece. Real estate investors’ main target in Crete has been Chania — one of Greece’s most mature and promising real estate market.
The right to property, as a fundamental right, is under the protection of the State, as provided in the Greek Constitution, Article 17, whereas it is stipulated that property rights cannot be exercised against the public interest. Within this context, the Constitution imposes a restriction or deprivation of property (expropriation) for the sake of public interest, always under the prerequisite of a prior compensation of the owner.
Greek property law refers to the different schemes of regulating property rights between each jurisdiction of the territories in Greece; combining legislation and receptive of common law. Greek property law refers to the law of acquisition, sharing and protection of valuable assets in Greece.
In today’s highly competitive real estate market, investment strategies and activities must not only deliver superior returns, but also meet more stringent regulatory requirements and transaction policies. At the same time, operations are under pressure to improve procedures efficiency, ensure transparency, achieve compliance and enhance decision-making.
ARENCORES PLI is an integrated application suite that automates front, middle and back-office legislation processes for investors and shareholders, including partners and service providers. To meet the increased demands of investors and simplify the processes of the Greek property law ARENCORES helps transform data into intelligence, enabling them to accelerate procedures, enhance decision making and improve return of investment, while reducing costs, uncertainties and risks.
To attract investment and achieve compliance today’s real estate firms need a sound operating framework that provides insight on the transaction taxes and fees. A firm’s investment and property portfolio management has a critical role in the day-to-day activity, performance, sourcing, business development and search for valuable assets. Greece Taxation Highlights is an attempt to provide an insightful analysis of the Greek tax system.
In Greece, tax collection performance lags behind the European average, while complexity and ineffectiveness are posing obstacles to fiscal consolidation. The Greek tax system is characterised by high tax rates which do not result in the anticipated revenue. At the same time, while total annual tax revenues remain fairly stable the tax parameters are constantly changing, leading to a number of peculiarities
Chania is a key destination for foreign investors from Germany, Great Britain, Denmark, Sweden, Norway, Austria as well as USA and Israel, with popular destinations like Vamos, Douliana, Gavalohori and Agios Pavlos, Plaka, Almyrida, Kabia, Kokkino Horio, Kaina, Kefalas, and Paleloni being very popular. It should be denoted that German, French, British and Belgian real estate investors prefer traditional stone buildings in old settlements.
Despite the economic crisis and diachronic indicators such as bureaucracy, tax/legal system, instability and lack of incentives, which have currently been intensified because of the increased austerity measures, Greece’s real estate sector is very promising and attractive among overseas investors.
Between years 2013-2016 almost 650 million euros have been invested in Greek real estate by foreign investors, with the emphasis given to summer houses and traditional stone built constructions in particular. The majority of the investment funds have been directed to the island of Crete and the magnificent island complex of Dodecanese in south-eastern Aegean.
The valuation procedure is a systematic process the appraiser follows to answer a client’s request about the value of a property. The magnitude of this important source of information generates an indispensable requirement for well – informed and reliable appraisals to support decision making including, real estate disposition, value estimation, marketability, and the rights inherent in ownership.
However, the appraisal process faces a number of challenges and competing priorities: a) The level of compliance for all real estate assets is increasing with new bodies, standards and regimes b) How to effectively manage risk and costs without impacting returns c) How to seize (seize upon) new opportunities in domestic or international markets d) How to harness innovation and respond to the recession of the market.
We often come across the dilemma about “passive investment or active investment”; so much so that it has outgrown the need for further explanation. When people say that old-style real estate is being “disrupted” by intelligent and sophisticated platforms such as Smart Property Sourcing and Qualitative Appraisal, it is reasonably clear that the real estate sector is not facing small-scale shaking, but rather off-the-charts seismic action that is tearing down the walls of the old-style investment approaches.
The same applies to traditional commercial or private investments, which are being disrupted
by performance measurement systems, portfolio theories, tax efficiency metrics, transparency barriers and all varieties of country dependent regulations and ever-changing market policies.