Greece Commercial Luxury Properties and Investments

Buying commercial real estate (CRE) in Greece can be a good investment, but like all investments there should be due diligence performed.

Commercial properties typically generate higher rental income compared to residential properties, especially if the property is leased to reliable tenants but can come with higher purchase or investments costs.

Greece has the twelfth longest coastline in the world at 13,676 km (8,498 mi) in length, featuring a vast number of islands (approximately 1,400, of which 227 are inhabited), including Crete, the Dodecanese, the Cyclades, and the Ionian Islands among others with Mykonos and Samos being a particular favourite for vacationers. Eighty percent of Greece consists of mountains, of which Mount Olympus is the highest at 2,917 m (9,570 ft).

Greece has land borders with Albania, the Republic of Macedonia and Bulgaria to the north, and Turkey to the east. The Aegean Sea lies to the east of mainland Greece, the Ionian Sea to the west, and the Mediterranean Sea to the south.

Modern Greece traces its roots to the civilization of ancient Greece, generally considered the cradle of Western civilization. As such, it is the birthplace of democracy, Western philosophy, the Olympic Games, Western literature and historiography, political science, major scientific and mathematical principles.

Commercial leases tend to be longer, and therefore provides a more stable cash flow than shorter residential leases. Leases can be over several years to 10 or more depending on the client.

Commercial real estate can have value appreciation over time, allowing the investors to sell at a higher price than the original purchase, especially in areas with a growing demand for office space, retail, or industrial facilities.

Expenses related to managing and maintaining commercial properties can be tax-deductible depending on the location of the property and current tax regulations. Commercial leases can go up as written in any agreement, where the property and rent increase with inflation, which adds to investment value.

Commercial real estate offers a way to diversify a portfolio, providing a way to ward off affects of market volatility, especially if the investor has interests in several investment market types.

Over time, as tenants pay rent, investors build equity in the property. The combination of tenant payments and property appreciation contributes to equity growth, which can be tapped into through refinancing.

Commercial real estate in listed by owner or agent can be financed with a relatively small down payment, allowing investors to use leverage to purchase larger properties with less upfront capital. If the property appreciates, the investor can benefit from the full increase in value while only investing a portion of the capital.

As a commercial property owner, you have more control over the investment compared to other asset types. You can make decisions about property management, improvements, and lease structures to maximize value.

In many commercial leases, tenants are responsible for additional costs, such as property taxes, insurance, and maintenance (known as "triple net" or NNN leases). This reduces the property owner's financial burden and can help improve cash flow.

Commercial real estate offers opportunities for scaling up investments. You can expand your portfolio by acquiring more properties, or you could diversify into different types of commercial real estate (retail, industrial, office, etc.) to reduce risk.

While there are many advantages to buying Greece listed by owner or agent commercial property for sale, it's also important to consider the potential risks, such as market fluctuations, property management challenges, and the illiquidity of the asset. If you're new to the commercial real estate market, it might be helpful to consult with a real estate advisor or broker to get a better understanding of what type of commercial property might best fit your financial goals and risk tolerance.

If looking at Greece as an overseas or foreign investor or buyer into Greek real estate, those who typically invest or purchase at €250,000 to €800,000, which varies according to the area chosen, can obtain Greek residency through the Golden Visa Program, making Greece an attractive gateway to the EU.

Greece, which is deemed as affordable when compared to other luxury property markets, can offer high-end real estate at lower price points than hotspots like the French or Italian Rivieras, still with excellent growth and demand, and Greece offers many buyers the attraction of purchasing into the Greek lifestyle that has a great appeal, where buying through a real estate agent or buying direct from the owner.

Greece offers both stability and opportunity to buyers and investors, as tourism to Greece brings in over 30 million visitors across the mainland and the Greek Isles.

With the Golden Visa residency as an option those buying for personal use or as an investor in Greece real estate, whether the aim is short-term rental income, capital gain, or a mix of personal use and renting for income should be considered.