Greece Travel Tips and Guide

Perhaps it was the attention drawn to Greece when the Olympic Games were held there in 2004. Perhaps it was the entry of Greece into the European Union. No matter what the primary reason, Greece has begun to attract an ever growing number of foreign nationals who are investing in real estate in that country since the turn of the century. Indeed, to utilize an overused term -- when it comes to real estate, Greece is hot.

The greatest deal of real estate activity in Greece involves property that is used for vacation or holiday purposes. In point of fact, some of the fastest moving real estate markets in all of Europe are those that are located in Grecian resort communities. Literally thousands of people from a wide range of different countries can be found snatching up real estate in one or another of the various Grecian resort areas.

Foreign nationals have also invested heavily in commercial properties in Greece, particularly in the larger cities in the country. This includes investment in properties that house retail operations and enterprises as well as office buildings. The demand for office space within Greece -- again, particularly in the major cities -- has increased dramatically since Greece became a part of the European Union.

Investment Property in Greece

Again, in the aftermath of the Olympic Games, many real estate analysts maintain that the country -- particularly in and around Athens -- has been overbuilt, at least to some degree. This is a natural result in the aftermath of the Olympic Games and other large scale events such as the World's Fair.

In any event, this renders Greece an ideal locale for investment in real estate of all sorts -- industrial, commercial, residential, holiday property. This factor, coupled with Greece's admission into the EU, renders it a prime spot for realty investment. A significant number of foreign nationals have been attracted to the profitable Grecian real estate market at the present time.

Residential Real Estate in Greece - Single Family Properties

Low cost single family dwellings are rather difficult to find in the Athens metro-plex. If a person is interested in residential housing in that part of the country, the best bet at this point in time is apartments (which will be discussed in more detail shortly).

Understanding the functionality of the Athens residential market, there are a number of different areas beyond Athens in which single family residences can be purchased for a reasonable amount of money.

In addition, in different resort areas around the country there are some splendid (and pricy) villas and other properties that are attractive to well heeled foreign nationals who want second homes and holiday properties. With little difficulty on the hunt, a person with a bankroll to spend, can locate and purchase these types of homes.

Finally, there are farmsteads in different parts of Greece that are on the market. Some foreign nationals have taken to purchasing these types of properties which they then renovate and turn into magnificent second or holiday homes. Oftentimes, these properties can be purchased on the cheap and improved with only a moderate investment and expenditure. There are some foreign nationals who have taken to buying and then improving these properties after which they put them on the market and turn a tidy profit.

Residential Real Estate in Greece - Apartments

With the return of the Olympic Games to Greece, there was a boom in the number of apartments that were being constructed in that country, particularly in and around Athens -- the site of the games. Once the games concluded, there was a general consensus that developers had overbuilt apartments in Greece, again particularly in and around the capital city.

With this said and understood the apartment market in Greece (most especially in and around Athens) truly has become one that favours buyers at this point in time. Consequently, many foreign investors have been active in purchasing apartment properties in Greece. Many such foreign property buyers have realized outstanding deals in the apartment market in Athens and in surrounding communities at the present time.

Some years ago, I bought open rural land on the outskirts of the quaint fishing village of Plaka, opposite to Spinalonga (Elounda)on the island of Crete, Greece. It provided a solid learning curve of dealing with the bureaucracy. As a result, my recommendations here are 8 tips not to be overlooked today if you intend to buy land for development for a house or apartments (and designated outside a town or village limits):

1. Note: Building Regulations are administered by each prefecture. While the basic rules are applied nationwide, Crete's building regulations can vary, taking into account local circumstances. Be sure when taking advice, to listen to comments that relate to the prefecture (County) you will be located, not elsewhere. Crete has four separate administrative counties: Chania, Rethymnon, Heraklion or Lassithi.

2. Be aware of the variation in the time it takes to issue a building permit by the nomaxia (county hall). Some permits are approved in a few weeks but they can take up to a year or more. Once your architect submits the application and it is accepted a reference number or what the Greeks call a "protocol" number is allocated to the file. The issuance date and protocol number have to be prominently displayed on the work site of your future home until building activities are completed, and all taxes and government charges paid - including clearance from DEH, the electric company. After the date of approval, you have four years to complete the build of your home or apartments.

3. Note: Forestry Department Clearance Needed. Outside of town/village limits, land that looks as though it is fallow, disused or not a tree in sight, may be designated forest in old official documents. Ensure the architect applies early for clearance to build in the permit process.

4. Archaeology Department Approval. With Crete's civilization dating back some 3,000 years or more, you never know where historical artifacts are to be found in remote villages and areas. The local archaeology department gives clearance to build as long as there are no relics on the site to be disturbed. If permission is given the department may have grounds to designate the site - as a "national heritage" place, or of historical interest and beauty, and had a dwelling originally on the land. If either is the case, your architect may have to follow a suitable traditional building design laid down by the authorities.

5. Hire a Surveyor. A custom has developed that foreign buyers of property in Crete have to pay for a surveyor to be hired by the seller to establish boundaries of the proposed land to be transacted. As time goes on this will become less important with the establishment of a computer-based, Greek National Land registry ( "Ktimatologio" - which is replacing the "Hypothykophylakion", or public registry for titles of all kinds of immovable property in Greece). Get a Surveyor. Do not take the chance that after a contract has been signed, an angry neighbour complains the boundary is not accurate.

6. Tighter Building Codes along the Coasts of Crete. Coast means tourist activity in Crete and a target for tax collection. Be aware that building design, erection of pergolas, verandahs and swimming pools, even the color scheme may require special consideration, and if not may have potential tax implications once you have moved in. Check out your architect's best advice.

7. Plan to Rent? Then an EOT Licence is essential. There are no more gray areas in short term holiday rental of expat property in Crete. For that reason and the tax office, explore all the issues regarding having to obtain an EOT License from the Greek National Tourist Organization, balancing its cost versus income benefits. If an EOT license is incorporated in your building permit application, it dictates a very different form of application with binding tax implications.

8. Buy in Winter time. It is the time of year when local Cretans are not under so much financial and general stress, unless they have to find money urgently to pay their annual tax. Either way it is to the buyer's advantage. Prices in the "off season" can be more flexible.

Note: This is not an exhaustive list and further questions should be asked of your architect with whom you will sign a contract to plan and build your dream home in sunny Crete.