Investors from all over the world, primarily Asians and Americans, are stepping up their interest in purchasing properties in Cyprus and Greece. Real estate assets in Athens and the islands of Corfu, Crete and Rhodes have attracted plenty of interest from overseas investors in recent times.
The fact that Greece and Cyprus are offering residency visas to those who purchase properties in the countries has interested many potential buyers from overseas. Non-EU residents now have an easy way to acquire residency permits in EU locations, and the opportunity seems too good to pass up for most of them. Residency permits in Greece can be acquired after purchasing properties worth 250,000 Euros or more.
Interested buyers have several different options at their disposal. In addition to a variety of choices, residential real estate prices in Greece have fallen further by 11.5 per cent during the first six months of 2013, bringing the overall decline since 2010 to almost 29 per cent on average. However, the political stability of the country along with the decrease in real estate prices have played a crucial role in increasing foreign buyers’ appetites, but the Greek government must continue with the current reforms program if investors are to come in plenty.
Real Estate Problems in Cyprus
The financial problems of Cyprus stemmed from two of its biggest banks – the Bank of Cyprus and Laiki Bank, both of which were associated with the local property market. The lengthy negotiations held in March this year to bail-out both banks stalled the nation’s economy. Real estate worries mounted in the form of developers and constructors who would often print attractive pictures on their brochures and make promises of fine amenities which would never materialize. Several investors were left disappointed by the quality of homes and apartments offered to them. As a result, many buyers sold their homes and left the market for greener pastures.
Bigger Brokers Increasing Investor Confidence
Since the small brokers were untrustworthy, several large brokers entered the market to ensure that potential buyers will get whatever is promised to them, nothing less, nothing more. Buyers require more security as they switch from small-time local brokers to larger authentic corporations.
Buyers feel more confident about their investment when it is associated to reliable high-profile brokers than local dealers. Real estate analysts say that many small participants had entered into the market following the real estate boom a few years ago. Problems were created due to differences between local brokers, and the real estate market as well as the Cypriot economy suffered as a result.
With the entry of established brokers into the Cypriot market, investor confidence is set to improve further as the year progresses. Although the nation has not set a definite target on the number of properties it wishes to sell this year, market insiders are of the opinion that Cyprus will perform considerably better in comparison to the previous few years. The economy is expected to benefit from Cyprus’ property campaigns, and recover sooner rather than later, putting to bed years of troubled times.
Written by Les Calvert writer on Greek properties for sale