Realty woos Israelis and Turks

The main reasons why Israeli and Turkish investors invest in the Greek property market are the political and economic stability and the attractive sales prices compared to those in their own countries.

“Key factors for Israeli investors are the low investment threshold, geographical proximity, and the similarities between the two peoples’ cultures,” notes Ofer Reshef, business development director of Arledan Group.

Speaking in the context of the 2nd Premium Real Estate Forum in Athens, Resef said the initial trigger for the arrival of Israeli investors was certainly the economic crisis and its investment opportunities, with property investment fetching net returns of 5-6% on an annual basis, against 2-3% in Israel. Now, the main reason is that the cost of investing in Greece is lower.

“In Tel Aviv, a two-bedroom apartment costs 850,000 euros. In Greece, the prices of similar properties start from €125,000, an amount many Israelis can easily afford. In their own country, however, they need equity capital of €400,000 and an additional loan amount to acquire a property,” emphasizes Resef.

Another reason is future premiums in relation to Israel, as today prices in the Greek market are 15% lower on average compared to the 2007 market peak.

According to Resef, there are four types of investors from Israel. First, individuals looking for returns of 5-6% and the prospect of future capital gains with an investment budget of €100,000. Then, small companies coming to Greece, investing €500,000 to €5 million, looking for higher returns of the order of 13% and focusing on houses or small offices. The third type concerns large companies and institutional investors who invest over €5 million and seek long-term profits. The fourth category are estate agents who come to Greece to expand their residential portfolio offered to Israelis.

Regarding the Turkish market, according to Kostas Arslanoglou, president of Invest Greece – Solomon Realty, “investors from Turkey are mainly looking for properties in the southern suburbs, but we have also directed them to important opportunities in select areas of the center of Athens. Today we have a stock of 15,000 suitable properties we are promoting to the Turkish market.”