Over the last few years, news about the country Greece has been very dire. The country is now on the verge of bankruptcy. However, despite the downward spiraling of the economic conditions in the country, the real estate industries where the properties are purchased are at a very healthy rate. The primary foreign investors in Greece are the Russians.
Why invest in Greece? There is a twofold reason why people invest in properties in Greece: prices for the luxury properties in Greece have dropped significantly by 50 percent since the year 2009 and the Russian investors are also looking for locations to invest their money away from current economic crisis in their own country in order to protect their holdings. The relationship between Greece and Russia is very strong with a $2.27 billion gas pipeline that is being built to supply the Greeks with gas from Russia. For this reason, it will not be a surprise why Russian investors in particular are taking interest in properties in Greece where they have also invested heavily in the last few years like they have in Europe and across the US.
Low Prices Continues to Fuel Investment in the Country
Since the third quarter in the year 2008, the overall price in the real estate industry in Greece has lowered down by an average of at least 40 percent. You will not anymore be surprised why Russian investors are looking at Greece as an excellent opportunity and are looking forward to get out of their current economic condition. However, there are still investors coming from other countries that are skeptical about investing in Greece as there is a proposition that the country may be thwarted out of the Eurozone. Russian investors on the other hand have demonstrated a greater determination to place their money in the Greek real estate market despite the impending fears of a collapse.
Real Estate and Recession
Despite the foreign Russian investors coming in Greece and investing heavily on the property sector, the real estate market as a whole still continues to decline since the government also raised the property taxes in order to meet the budget of the country. Additionally, the prices of apartments fell by at least 5 percent during the second quarter of this year which is again a bad sign for the Greek economy.
Though the property sector in Greece is sliding down, the industry in other parts of Europe have promising signs of improvement and along with this, other companies engaged like suspended ceilings in Bedfordshire will also be doing well.