Israelis Are Flocking: Luxury Villas in Greece at Unbelievable Prices
A decline of approximately 70 percent in property prices in Greece is leading many Israelis and Israeli companies to seek real estate investments in the country. Is this economic suicide or a once-in-a-generation opportunity?
Udi Shishon
Globes
Published:
Despite the fragile social and economic situation, and amid uncertainty regarding its continued membership in the Eurozone, Israeli real estate companies operating in Greece continue to market dreams to Israelis. G.R.E., which has been marketing real estate properties in Greece for nine years, is one of them.
Idan Sarusi, the CEO and owner, identifies an opportunity in the current situation: “Today, any Israeli citizen can purchase a villa with a pool on 2-4 acres in Greece, with sea views on a tourist and attractive island, at the price of an apartment in the periphery of Israel. While in Israel you need to be a millionaire to buy a house near the sea, not even on the beachfront, in Greece you can purchase such a villa for one and a half million shekels.”
Why should an Israeli investor put their money in Greece now? This is suicide.
“The opposite is true. From the Israeli investor’s perspective, Greece is extremely attractive right now, when there is uncertainty and the euro is at its lowest point since 2002, and recently many Israelis are indeed coming to Greece and showing interest in good investment properties.”
According to Sarusi, half of the Israeli investors purchase properties intended for tourist rentals, both in Athens and Thessaloniki, and not only on the exotic islands. Investment in the cities is also directed toward commercial properties, which according to Sarusi yield returns of up to 12% per year. The other half, primarily among those investing in the islands, combine rental income with private use of about one to two months per year.
“An apartment near the Acropolis, in the heart of Athens, costs approximately 900 euros per square meter,” says Sarusi, “which is one-fifth of the price in Tel Aviv. I don’t think prices have much further to fall. Perhaps another 10 percent.”
The article appeared in Globes
