Greece: the tide is turning

Greece has long been overlooked by investors, but that may be about to Change, claims Piraeus Bank …

It’s easy to believe that the success of one nation’s tourism market goes hand in hand with the subsequent successes of its property market, and that where there is a strong desire for a summer holiday it follows that there is almost equally as strong a desire for a summer holiday home. 

This is particularly easy to accept in the Mediterranean region where so many British, Irish and Northern European citizens dream of spending their summer evenings and an almost equal number seemingly dream of owning a holiday bolt-hole or retirement retreat.  However, in reality not every Mediterranean market does have as popular a property market as it does a holiday market.

The Greek mainland and the Greek islands are almost the epitome of 'destination perfection' for those who long for star sprinkled, sultry summer nights and lazy days played out against a backdrop of silvery barked olive trees, beautifully bright bougainvillea, azure skies and the sparkling crystal clear waters of the sea. 

And yet Greece is not famous as a second home nation – it is not even in the top twenty countries in which British, Irish or Northern European buyers invest in holiday homes, retirement property or even buy to let real estate.

Why is Greece ignored by investors?

Why is it that Greece – beautiful, romantic, historic, accessible, welcoming and desirable Greece - is not where we’re all dreaming of buying that seaside villa or investing in that jet-to-let apartment? Well, the truth lies somewhere in a complex web of bureaucracy, rather socialistic politics, old fashioned laws, lack of financing and high taxes. 

However, all that is beginning to Change as Greece is keen to attract overseas buyers to its shores and willing to listen and learn from the mistakes made in other Mediterranean destinations. 

In its latest special report on the travel and tourism economy in Greece, the World Travel and Tourism Council (WTTC) took specific time out to praise the previous Minister of Tourism, Fanny Palli-Petralia, for bringing strong leadership and sound strategy to Greece’s previously under performing tourism market.

According to the WTTC, whilst Greece is already doing well in terms of the amount of market share it commands, (Greece has a 10% share of the Mediterranean tourism market), it could do far better given its natural assets and attributes. 

The WTTC cite issues such as governmental under-spending on the sector, bureaucracy, sub-standard facilities and restrictions on capital investment as having held the market back – and interestingly, these are exactly the same sort of issues that had held the property market back in Greece as well.

Steady Change of direction

Fortunately, in 2004 a Change of government and a total Change in political direction in Greece has resulted in a steady Change in direction - for the economy and for certain specific economic sectors in particular, such as tourism and real estate.  Everything from the high unemployment rates, heavy taxation levels and endless red tape are now changing for the better.

The current Minister of Tourism, Aris Spiliotopoulos Sees the promotion of Greece as an obligation, not a privilege. In his speech at the official presentation of the new promotion campaign of Greece Abroad, he said that his intention is to show the world that Greece has the same capacities, services and infrastructures as the rest of the developed countries in the European Union.