Added 17/09/07

Greek islands grow in desirability

 
Improved communications and transport networks on the Greek Islands have led to growth in Greece property investment.

Regeneration investment carried out in preparation for the 2004 Olympics, coupled with a growing economy, and increasing tourism figures, have further strengthened the Greece property market.

Obelisk International says latest figures show that year-on-year price growth has been seven percent up to quarter 1 of 2007, with prices for apartments in Athens registering a 12 percent rise in the first quarter of 2006. During the period 1999 to 2002, Athens saw house prices increase on average by 164 percent.

The Saronic islands are located within the closest proximity to the rapidly expanding capital city of Athens and have experienced dramatic expansion. Aegina, located within 50 minutes to the mainland, is increasingly popular with middle-income families for a summer escape. Spetses offers more upmarket, high-end properties.

Foreigner purchasers are now beginning to match domestic demand with some market analysts expecting the country to become a hotspot for overseas property investment. A Place In The Sun magazine found Greece to be the sixth most favourable destination for foreign buyers.

There has also been a rise in the number of low cost airlines, such as GB Airlines who are now increasing their flights to Crete, Rhodes, Corfu and Mykonos.

• Piraeus Bank London has improved its mortgage lending terms. For Greek property investors, the Bank is offering an interest only mortgage available for up to 10 years on property and five years on land.

40 percent of projected market rental income will be taken into account when assessing affordability – an improvement of 10 percent as well as 60 percent of existing rental income (an increase of 10 percent).