Anyone interested in investing in real estate in Greece faces the dilemma of whether to purchase an apartment for long-term rental or a short-term rental property, i.e., vacation and tourist real estate. The data indicates a significantly higher return from vacation rental properties, although this involves the costs of operating the property and managing its ongoing maintenance. A vacation rental apartment has a potential return of 8–12 percent, while the return on long-term rental apartments stands at 5–6 percent. Real estate in the Greek islands, in particular, offers especially attractive investment opportunities, thanks to the islands’ growing popularity as sought-after tourist destinations. It is important to note that these are net return percentages—that is, after deducting taxes and maintenance expenses.
According to a study by Global Property Guide from August 2023, the average gross rental yield in Greece stood at 5.22% in the third quarter of 2023. In central Athens, rental yields range from 3.45% to 7.71%. In Athens, rent for a two-bedroom apartment can range from €500 to €800. In Thessaloniki, the same apartment costs €400–€650 per month. Smaller apartments yield a higher return than larger ones. These figures indicate consistent demand and perhaps also the success of incentive policies designed to encourage foreign investment, which have led to a gradual but steady decline in the percentage of Greek citizens who own apartments in their own country.
Questions and Answers
The expected return on a vacation rental in Athens varies widely, depending on the property’s location and how it is rented: for short-term rentals (vacation and tourist properties), the potential return can reach 8–12%.
It is important to note that the higher returns from vacation property rentals involve additional costs for operating the property and ensuring its ongoing maintenance.What is the average return on long-term rentals in Greece?
The average return on long-term rentals in Athens ranges from 3.45% to 7.71%, with the average standing at approximately 5.22% gross.
For apartments in central Athens, the gross yield is approximately 4.2% for 120-square-meter units, with smaller apartments yielding higher returns.
In the suburbs of Athens, the gross yield is slightly higher, at approximately 4.5%. It is important to note that the yield varies depending on the apartment’s size and location.
It is also important to take into account associated expenses and taxes when calculating the net return on investment in rental real estate in Athens.What is the average rental yield (gross) in Greece as of the third quarter of 2023?
The average gross rental yield in Greece stood at 5.22% in the third quarter of 2023, according to a study by Global Property Guide conducted in August 2023. In central Athens, the yield range for rental apartments varies between 3.45% and 7.71%.
What is the range of rental yields for apartments in central Athens?
According to a study by Global Property Guide from August 2023, rental yields for apartments in central Athens range from 3.45% to 7.71%.
The yield varies depending on the size of the apartment, with smaller apartments tending to yield higher returns than larger ones.
In central Athens, the average yield on 120-square-meter apartments is approximately 4.2%, while in the suburbs of Athens, the yield is slightly higher at approximately 4.5%.
What is the monthly rent range for a two-bedroom apartment in Athens?
The monthly rent for a two-bedroom apartment in Athens ranges from €550 to €1,550.
There are many factors that influence this range, such as the property’s location, its physical condition, and the apartment’s level of elegance.
Factors such as access to public transportation, proximity to community services, and educational institutions can also affect costs.
