Savvaidis calls for a strategic change in the Greek Property market

Savvas Savvaidis, managing director at Savvaidis & Associates and ex – President of the Hellenic Association of Realtors has been recently invited as a key note speaker in the Greek Real Estate Convention 2011. Here are the main parts of his speech :

"...Finally the green light has been given to a critical sector of tourism in Greece, “the golf tourism”. Investing in the golf industry is very expensive.  Key to addressing the high cost of investment is the development of housing within golf resorts providing a considerable amount of financing for the project. At the same time the profits from house's sales enhance the feasibility of the whole operation.
The same logic is practiced by “condos” which instead of villas offer hotel rooms for sale.
The benefits of the above “mixed” developments are manifold.  Enhancing government liquidity by selling off government owned land to investors, a boost in the construction industry and ultimately “quality” tourism throughout the whole year.

However the above alone is not enough to “stir” the real estate market in the area of second homes and this is because it only covers 20%-30%% of the demand. The majority of foreign buyers prefer property close to urban facilities and neighborhoods;

At the time being, there is a wealth of “second homes” in Greece with many varying types and design to satisfy the majority of the market demand.  Our real estate market does not suffer from a lack of supply.  The Greek real estate market suffers from a lack of demand as well as the rest of the other Mediterranean destinations.

It is a well known fact that demand for second homes has fallen significantly in recent years because of the global economic crisis. Let’s not forget that a second home is not a basic need.

The government however does have the ability to stimulate the demand for second homes by adopting a series of measures that will make the Greek market far more competitive.

1.    A reduction in VAT on the purchase of new build properties from foreign buyers to 10%, the equivalent amount of VAT applicable today on a new build property in Spain and Italy.  The current rate of 23% puts Greece out of the market.

2.     A reduction in transfer tax for foreign investors to 5%.  The injection of capital into the market and the development of the real economy will benefit our economy far more than the current meager income from VAT and Transfer Tax.

3.     Removal of the ban on non-EU citizens purchasing real estate in border areas. The current law allows for a lifting of this ban, on an individual basis, which usually takes 18 months!

4.           Simple licensing procedures by the Greek Tourist Board to allow rentals of second homes for a tourism use.  The renting of such homes is an essential first step for at least 50% of potential buyers.  To allow only the rental of residences that are embedded within the new mixed developments will create serious distortions in the holiday home real estate market.

There is no doubt that the planning of “mixed” tourism developments is excellent news.  Even better news would be the adoption of immediate fiscal measures.  The injection of capital from the second home market in Greece would stimulate the real economy.
The recovery of the Greek economy is not possible without the recovery of the real estate market. "

Savvaidis | Buying property in Greece made easier for non EU citizens

Till now, buying a property in the Greek Islands has been a very lengthy process for all buyers outside the EU.

The procedure, for national security reasons, involved a series of approvals from various departments of the Greek Armed Forces, as well as checks to the prospective buyers from the Ministry of Foreign Affairs and the Ministry of Interior Affairs. Foreign buyers and investors had to wait for more than 18 months to obtain a license were completely put off by such an unreasonable bureaucracy. In the majority of cases the potential property was intended as just a small holiday home.

The Ministry of Defence has announced that the complex procedure, organized centrally in Athens, will be replaced with a local committee at regional level that will be able to address the issue in a very efficient and speedy way.

According to Savvas Savvaidis, at Savvaidis & Associates Estate Agents, this is a very important step towards the normalization of the Greek Real Estate Market. Capital doesn’t have a flag. The Greek Sovereignty is not at any stake if non Europeans buy a property in the Greek Islands. It has been very frustrating to see buyers investing elsewhere and not in the Greek Island because of a Law dated back in 1926 “ continues Savvas Savvaidis.

In the same announcement the Ministry of Defence has added that any kind of licensing (Blue Cards Issuance) will be completely abolished for all citizens of EU and for the citizens of Switzerland, Liechtenstein, Iceland and Norway. The Blue Card Issuance has been an unnecessary registration to the Police Authorities in Case of a Purchase of a EU buyers resulting in a delay of nearly 2-3 weeks.

Savvaidis & Associates | April arrivals in Rhodes on the rise

Savvaidis & Associates International arrivals at the airport of the Greek island of Rhodes have increased by 59% per cent over the past month in comparison to April 2010.

Tourists arriving in Rhodes with charter flights this April amounted to 67,692 compared to 42,495 for the same month in 2010. According to the Civil Aviation Service, aircraft movements more than doubled, to 945 in April 2011 (from 436 in April 2010 and 558 in April 2009).

The island is expecting its visitor figures to further grow this year, as it is recording an increased interest in its airport slots, up by 19.6 per cent compared to last year.

Cruise passengers were also on the rise last month, growing by 36 per cent compared to the April 2010, from 36,772 to 49,870.

Along with Germany, UK is the top source market in Europe for Rhodes.

Tom Panagos, PR Manager for Rhodes Tourism in the UK, commented:

“Greece is making a comeback this year and Rhodes is exceptionally positioned for those Brits who want to rediscover this all time classic destination. The weather, the beaches and the food have always been there – but over the last few years we have focused on upgrading our tourism product, with more than 100 luxury hotels on the island, a new terminal and a new marina opening soon”.

He continued:
“Prices in Rhodes remain on similar levels to the 2010 season and our hotels offer exceptional added value. From all inclusive family holidays to a relaxing week in the sun and even short indulgent breaks, there are some amazing deals out there so we encourage people to shop around and find the right one for them!”

Savvas Savvaidis, General Manager from Savvaidis & Associates Estate Agents welcomes the news as very positive. "Rhodes is a classic tourism destination with a strong foundation of its tourism industry. The island has a great potential for developing tourism all year round.April's figures confirm the trend. The arrival of Low Cost Carriers in Rhodes this winter has shown that there can be a sustainable tourism activity during the winter months. After all being in full sunshine under 14-16 degrees is not really considered winter for North European standards " adds Savvas Savvaidis.

Savvaidis | Rhodes’ new Yacht Marina will boost the property market on the island

Rhodes, Greece 4^th February 2011

Rhodes’ Marina is Greece’s newest state of the Art Marina ready to be operational in early June 2011. 

The Marina, an investment of more than 100 million euro is expected to be a great success as it will attract a large number of boats servicing an important area of the South East Aegean Sea and will have a positive impact on the Rhodes’ property market according to Savvas Savvaidis of Savvaidis & Associates.

Rhodes’ Marina will have a capacity of over 350 vessels with at least 50 berths for the Super Yachts. The latest technology has been used for the Control Center, 2 kms of fiber optics will connect the boats to Satellite TV services, high speed internet, Cable TV and internal telephone lines.

On-shore facilities will include a bank, shops, restaurants, cafeterias, gym, spa with swimming pool, green areas and a beautifully landscape promenade along the Marina’s main pier. The complex will also include 16 VIP suites for yacht owners; available to rent.

There will be a shipyard for repairs, a large fuel station, a conference center and sailing club.

The development will contribute to the overall regeneration of the area and improve the quality of life for residents.

Recruitment needs around the marina are expected to expand the demand for housing, whether it be rental or purchase, in the surrounding area.

According to Savvas Savvaidis of Savvaidis & Associates – Rhodes’ leading Estate Agents property in the area will reap the rewards as an increase of interest around the marina has already been documented. Prices in the nearby area of Rhodes are expected to peak in 2012 once the marina will be fully operational says Savvas Savvaidis.

Savvaidis & Associates is currently in discussions for the development of 2 large plots of land in the immediate proximity to the Marina that will become a Commercial Centre and a 5* Hotel.

The knock on effects are expected to be seen further a field. The New Ring Road connecting the Marina to Rhodes International Airport has already been completed by 70%; increasing the value of land in the immediate area.

Rhodes’ New Marina is expected to attract 20,000 visitors per season from the yachts only, additional guests include tourists and locals that will use the on-shore facilities, like restaurants, bars and spa will reach previously unseen levels.

Savvaidis & Associates 2011

Savvaidis | Rhodes - now even easier to access - 17 new Greek Routes from Ryanair

Savvaidis & Associates, Rhodes, Greece 


Ryanair, the world’s favourite airline, today (3^rd Feb) announced 17 new routes, including routes to currently un-served markets, to the Greek holiday destinations of Kos, Rhodes and Thessaloniki from April 2010.
Ryanair now offers 30 Greek routes to/from Kos, Rhodes, Volos and Thessaloniki.

Ryanair’s Greek traffic will grow to over 700,000 passengers in 2011 sustaining up to 700 jobs and delivering over €350m in tourism revenues for the benefit of the local economy.

Ryanair celebrated its 30 Greek routes in 2011 by launching a 1 million €6 seat sale for travel on Tuesdays, Wednesdays and Thursdays in late February and March which are available for booking until midnight Monday (7^th Feb). Ryanair’s 17 new Greek routes go on sale on www.ryanair.com on Friday 4^th Feb.

Ryanair’s Stephen McNamara said:

“Ryanair is delighted to boost Greek tourism and the Greek economy with 17 new low fare routes to Kos, Rhodes and Thessaloniki, including new routes to currently un-served markets such as Lithuania. Ryanair’s 30 Greek routes will deliver 700,000 passengers p.a. sustain 700 local jobs and ensure over €350m to the local economy.

“To celebrate our 17 new routes Ryanair is launching 1million €6 seats, for travel across Europe in late February and March which are available for booking until midnight Monday. Since seats at these crazy low prices will be snapped up quickly, we urge passengers to book them today on www.ryanair.com.”

Ryanair’s 17 New Greek Routes 

	Kos	Rhodes	Thessaloni
Bari	x
Bologna	x	x
Bremen		x
Brussels (Charleroi)	x
Cagliari		x
Dusseldorf (Weeze)		x
Frankfurt (Hahn)		x	x
Kaunas	x	x
Liverpool	x	x
London (Stansted)		x
Oslo Rygge	x
Stockholm (Skavsta)		x
Trapani		x

This is great news for the Island and its inhabitants; the 17 new routes around Europe will make it easier for property owners to visit for a long weekend, not to mention more affordable air travel says Savvas Savvaidis, Managing Director at Savvaidis & Associates Real Estate Agents.