9 years of crisis: what to buy in Greece, selling a two-room apartment in Moscow. Please note that "двушка" refers to a specific type of apartment in Russia, typically a two-room apartment with a separate kitchen and living room.

The decline in the Greek real estate market is coming to an end - for the first time in several years, housing prices in Athens are "greening". Russians are already taking advantage of this opportunity, buying local properties to rent to tourists.

The Greek real estate market, after several years of decline, has finally reached its lowest point. The prices of houses in the land of the Olympic gods have dropped to record lows.

If you recently sold a two-bedroom apartment in Moscow, earning 10 million rubles from it, perhaps Hermes will be favorable and help you make a successful deal. From such an investment, you will at least get a good tan and warm sea almost year-round, and at most, you will be able to purchase several apartments and earn a 10% yield from renting them out.

A Greek Pyramid

The Greek real estate market has yet to recover from the crash of 2008 - prices plummeted by 40% over 9 years. The main culprits of this collapse were the Greeks themselves, who at one point turned the market into a real pyramid.

Until 2008, locals were buying apartments, using them as collateral, and taking out new loans in anticipation of rising prices. The crisis was a real shock: to somehow pay off their debts, Greeks started dumping their apartments on the secondary market from the end of 2008, and the price per square meter dropped to 400 euros. The echoes of those events are still heard today: according to local central bank data, while there has been a slight increase in property prices in all EU countries this year, in Greece they continue to decline, with a decrease of 1.2%.

Currently, the average cost per square meter of housing in Greece remains one of the lowest in Europe - around 1,000 euros. On the secondary market, the price per square meter is even lower - 600-700 euros.

The price range for Greek properties is wide - from 500 euros to 10,000 euros per square meter, says Ekaterina Rumyantseva, Chairman of the Board of Kalinka Group. So, if you sold a two-bedroom apartment in Moscow for 10 million rubles, the Greek market will have something to offer you: from small apartments with sea views to houses on the coast.

Low Prices and Stable Rental Income

The main reason that makes the Greek real estate market attractive is its minimal prices in Europe. In theory, this means that it has enormous growth potential, and there is even a good chance that it will be realized.

A good sign is the ongoing recovery of the Greek economy, which according to IMF forecasts will grow by almost 3% this year.

Another positive sign is that the IMF is not the only optimist, and foreigners are gradually returning to the local real estate market. "Since 2012, foreign investments in Greek real estate have been growing on average by 26% per year. In 2015, 186 million euros were invested in Greek real estate, and in 2016 - 250 million," notes Anna Danishk, editor of Tranio.

Another important argument in favor of Greek real estate is obtaining a residence permit. "The most popular reason for buying luxury Greek real estate is the opportunity to obtain residency. To do this, you need to buy a property worth at least 250,000 euros (17 million rubles)," specifies Ekaterina Rumyantseva. In this case, not only the buyer, but also their family members and parents, will obtain residency permits.

In addition, you can earn money from your apartment by renting it out to tourists. In 2016 alone, the birthplace of democracy was visited by 27.5 million tourists. It is expected that this year, the Acropolis, Dionysus Theater, and the Temple of Zeus will be visited by 30 million people.

Many Russians are also eager to earn money in the homeland of the Olympic gods. "Often, our compatriots sell their apartment in Moscow for 6 million rubles and buy two inexpensive properties in Greece for 35 thousand euros each to rent out. Apartments can be rented from May to October. Occupancy rates for such apartments range from 22-24 days per month, with prices starting at 30-35 euros per day and reaching up to 60 euros during the season," said real estate specialist Igor Missing from Grekodom Development.

As a result, a rental apartment can bring in up to 300 thousand rubles per season. Such an apartment can break even in 8 years when rented at minimum prices during the season.

However, before making a purchase, it is necessary to thoroughly check the property to ensure that you do not inherit any debts from the previous owner. This could include debts for utilities or a mortgage taken out on the property. If the debt has not been paid off, it will become your responsibility.

Those whose budgets far exceed the price of a two-bedroom apartment in Moscow prefer to invest in commercial real estate, primarily hotels. The country's tourism industry is growing annually, and the average hotel profitability is 5-6% per year, added Ekaterina Rumyantseva.

Athenian Rentals

Despite the overall decline in prices, the real estate market in Athens remains attractive. First and foremost, it is one of the largest tourist centers in Europe, and there is always high demand for rental properties. Secondly, the price per square meter in Athens is much lower compared to other European capitals, at around 1200 euros.

Additionally, the local market is finally showing signs of growth. According to the Bank of Greece, in 2017, the average selling price of property in Athens increased for the first time in several years.

If you believe that this is just the beginning of the growth, then with the budget of a two-bedroom apartment in Moscow, you can confidently travel to Athens as the assortment will not disappoint you. According to Tranio, for 10 million rubles, you can purchase a 95 square meter apartment near the city center. The rental income from such property can reach 10% or 15 thousand euros per year. You can also buy a small studio near the Acropolis for 50 thousand euros (3.4 million rubles). The rental income from such an apartment can reach 24% or 12 thousand euros (816 thousand rubles). Such an apartment can break even in 4 years, not including utility payments and taxes, which are among the lowest in Europe in Greece at 3-4 euros per square meter per year.

In Athens, you can find cheap options - apartments for 15-20 thousand euros (about 1.3 million rubles). The average cost of a good two-bedroom apartment in the center of Athens is 50-60 thousand euros (3.4-4 million rubles).

In new buildings, the price of an apartment will be significantly higher since Athens is almost not being developed. If we talk about new housing, it is usually located in the suburbs - areas such as Glyfada, Voula, and Vouliagmeni, where the price per square meter starts from 1500 euros.