Property Investment Peloponnese: Tripolis – One For The Future

Property Investment Peloponnese: Tripolis – One For The Future

For many years, Greece has been a prime destination for Northern Europeans and Americans wanting to live the dream and buy a holiday home in the sun. However, successive Greek governments have instilled measures to deter investors and prevent ‘flipping.’

A capital gains tax wipes out any potential profits from Greek property investments, unless you are prepared to wait for five years. Certainly, around the traditional hotspots in the islands and on the coast, it really is not worth investing in Greek property unless you have an eye on the long term.

Property Investment Peloponnese – Playing the Waiting Game

For those prepared to wait a while, there is the potential to make a little money, if you are prepared to think sideways and explore some of the relatively untapped areas. The Peloponnese is one such area, and there are some  untapped areas that are worth exploring.

Before elaborating, I would like to point out that this information is largely based upon the notorious Greek gossip, and Greeks are famous for their exaggeration and gift for putting two and two together to make five. However, I found these revelations to be worth investigating, certainly worthy of giving you a heads-up.

Property Investment Peloponnese - Tripoli could be the next big thing.

The Peloponnesian Oil Hub

Greece is diversifying and looking for new ways to make a living in this fast changing world. One thing that Greeks have learned from the economic crisis is that the traditional staples of Greece, shipping and tourism, are not enough to guarantee a stable and robust economy. These industries leave Greece far too reliant on other countries and, if the UK and US suffer economic difficulties, so does Greece.

In a dangerous and contagious outbreak of foresight, the Greek government decided to utilize the prime strategic location of Greece, astride the crossroads of the Eastern Mediterranean. Whilst the country is a proud member of the European Union, the Greek politicians understand the importance of courting the Russians, and this policy is beginning to bear fruit.

Greece is well on its way to becoming an ‘Energy Hub,’ acting as the last port of call for Asian oil and Russian Gas before these resources are sent into the European Union. Along with Turkey, Greece is profiting from this boom and the economy is benefiting greatly. More pipelines and oil terminals are planned, as well as moves towards expanding container ports to serve the rapidly developing Balkans.

What Does This Have To Do With Property Investments in the Peloponnese?

After the little trip around the scenic route, this has a lot to do with property investments in the Peloponnese. Simply due to location, the peninsula looks set to play a prime role in this move towards investing in energy infrastructure. The talk amongst the local politicians is that the port of Gythio will expand, to accept oil tankers, and the town of Tripoli, in beautiful Arcadia, will become the new capital of the Peloponnese. For investors, this is a potential bombshell and certainly worth investigating.

Tripoli – The New Commuter Belt

As any Brits will be only too aware, the commuter revolution changed the housing market forever in the UK. Villages in the provinces suffered a long and slow decline as young locals migrated to the cities in search of work, leaving many rural villages practically dead. Fast forward a few years, when house prices in London, Manchester and Leeds became prohibitive, and people began to look further and further afield, fuelling a boom in many rural areas and pushing up house prices.

In Greece, mainly due to poor transport networks, this process lagged, but the recent improvements in infrastructure have driven an expansion, as young Athenians begin to look further afield for a home. Tripoli, once a quiet and unassuming town, is now starting to become a decent prospect, lying just a couple of hours from Athens. Home to the new University of the Peloponnese, Tripoli is a growing town.

This is not just conjecture, because there are some big players moving into the area. Local entrepreneur and billionaire, Bakos, is investing heavily in the area, partly out of philanthropy but also because he sees the area as a long-term investment. He oversaw the rise of the local football team from the Greek regional leagues to the Greek premier division, and has built a new stadium, the one that hosted the recent England U-21’s match in Greece. Add to this a mysterious Arab sheikh building a casino and his own private hunting reserve, and things are looking interesting.

Property Investment Peloponnese – Where Do I Sign?

Before you get carried away, this is not a surefire winner or a cash-cow,  but it is one area that is worth looking at. Even looking at the bottom line, here on International Property Investment, we are firm believers that average house prices should be no more than 3.5x the average wage. In that respect, houses in and around Tripoli are underpriced. Add to that the potential for expansion in the area and looking inland, away from the coast, could be a sound investment.