Greece Property Resisting Recession
2009 promises to be a turbulent year in the worldwide financial markets. However, as banks reduce interest rates to their lowest levels in over 315 years and stocks plummet, the more traditional overseas property markets such as Greece remain popular with investors.
Unlike Spain, Bulgaria and some parts of the USA, where a boom in construction has led to oversupply, Greece has enjoyed a steady increase in popularity encouraged both by strict planning regulations that curb over development, and a government actively promoting upmarket tourism for the popular Aegean islands.
Concerned investors, now wary of stock markets, are once again turning to property but are doing so with an eye on long term returns. Bricks and mortar is one of the oldest forms of investment and one of the most resilient in a world where millions can be wiped from shares overnight. Purchasing a property abroad gives the investor different options in achieving their returns, be it from rentals, from their own use or from capital gains and in some cases all three.
Greece is an investors natural port of call, given its consistent desirability resulting in a stable resales and rental market. The Aegean islands represent the most promising profitability, with a demand for upmarket tourism rising but strict planning regulations restricting the speed at which development can catch up.
An important incentive for the property investor is the opportunity to control their tangible asset. They may wish to rent the property themselves, or simply hand it over to an operator to take care of the rentals for them. Or, perhaps they simply want to Ąparką their money somewhere and ride out the financial storm. Either way, the overseas property market is one industry that looks set to emerge as one of the more resilient investment options during 2009.