Greek Real Estate and Tourism – A Glimmer of Hope

Greek Real Estate and Tourism – A Glimmer of Hope

Despite the doom and gloom surrounding the world economy, we did find some good news that cheered the Greek people up.

Greece beat Israel 2 – 1 in the qualification for the World Cup in South Africa.

Sorry folks. That’s the only good news – there is nothing else to lift the gloom.

I jest, of course, and the latest tourism figures have provided some hope for Greece. Recent figures have shown that bookings for package holidays to Greece have increased by a quarter on last year’s total. It looks like people in the UK, Germany and Scandinavia are determined to enjoy a summer break, despite economic hardship, and are looking at ways to stretch the holiday budget. Package tourism does not contribute as much to the tourism economy as independent travel, but it will pick up some of the slack and ensure that the industry survives.

The forecast was a drop of 10 – 30% in overall tourist revenue, and this news looks set to keep that estimate at the conservative end. The country can breathe a sigh of relief as the state of the Greek tourism industry has been a great source of debate. Greek hoteliers have been very proactive in offering discounted rates to tour operators, and this strategy is working.

Greek property investing

This is a mixed blessing for potential property investors, as tourism is one of the drivers of house price increases in many areas of Greece. The good news about tourist numbers will ensure that prices do not fall, and there is little chance of a Greek real estate investment losing value. Any investment in Greece remains a long-haul investment, but .is a good place to shield assets from the uncertainties of currency markets and stock portfolios.

The downside is that it means that Greeks are more likely to hold onto property rather than drop their price, and attempt to weather the storm, so real bargains are becoming hard to find. A couple of months ago, vendors were a little more tempted to lower their prices for a quick sale, but that is proving little more difficult.

My brother-in-law visited at the end of April, looking for a renovation property, and there is no shortage of available properties. Noticeably, the Greeks are much more reluctant to haggle than last year, so it is becomingly increasingly unlikely that you will find any investment property at lower than market valuation.