Greece’s Financial News
Inflation: Greece recorded the third lowest at EU level for October 2021
Greece recorded the third lowest inflation at European Union level in October, based on latest data from Eurostat, with energy firmly playing a key role in price increases across Europe. Prices in Greece compared to October 2020 increased by 2.8%, clearly lower than the average in the EU, which amounts to +4.4%. It is noted that in all member states of the Union the annual rate of price increases was higher in October compared to September. In fact, significant increases were recorded in the four largest economies of the Union. Inflation rose to 4.6% in Germany, 3.2% in France and Italy, and 5.4% in Spain. The “champion” is Lithuania, where the relevant rate reached 8.2%.
Greek tourism: Half of tourists and revenue in the 9 months compared to 2019
According to its published statistics, in the period January-September 2021 10.0 million international flight arrivals were recorded compared to 18.8 million in the same period of 2019, showing a decrease of -46.7%. Travel revenue for the period January-August 2021 showed a decrease of 50.2% compared to the corresponding period of 2019 and amounted to 6.5 billion Euro. The largest decrease is found in road arrivals, where in the period January-September 2021 3.3 million international road arrivals were recorded compared to 10.3 million in the same period of 2019, showing a decrease of 67.6%.
Investments in hotels is changing the image of downtown Athens
The investment activity in the hotel real estate market in the center of Athens is moving at a fast pace again, with the pace of openings and new plans having now returned to the level it was at before the pandemic. This is a clear “vote of confidence” of the chains and entrepreneurs of the industry in the possibility of immediate recovery of city hotels but also in the long-term prospects of Athens as an international destination, both for the summer months and for the rest of the year.
Investments in Greece
Greece’s prospects in the sector of commercial real estate are emerging and for the first time Athens is ranked first on the list of 31 European major cities with respect to market prospects in terms of increasing rents and values, followed by Copenhagen and Berlin. Greece in general and Athens in particular, as showed by the answers given by real estate managers, executives of investment firms, managers of foreign investment funds etc., has the best performance this year compared to previous years. In particular, in the overall ranking it occupies the 23rd place (last year it was 28th) in terms of the overall prospects of the real estate market in Greece. The performance is higher both in terms of investment prospects, in the sector of real estate development where it is rated with 4.24 with a maximum score of 5. Especially for Greece, executives comment that prices are starting to rise, at the same time that the government seems to be creating conditions of stability, being more friendly to investors and businesses.
Investment opportunities in Greece
The new economy that is now forming in Greece offers diverse and attractive investment opportunities in a wide range of investment sectors. Significant reform efforts are opening up new investment horizons that favor both start-ups and already established businesses.
Investments in the Greek Tourism Industry
Given that Greece is among the top 20 tourist destinations in the world, we understand that the tourism industry is indeed very much alive. Greece is one of the world’s top tourist destinations for sun and beach holidays and also provides attractive proposals for themed holidays all year around. Greece’s competitive advantages such as its rich culture, natural beauty and geographical diversity, in recent years have attracted significant tourism investments, thus further strengthening the image of Greece as an ideal destination for both holidays and tourism-related investments. Greece is ready to make significant investments in the tourism industry, focusing on the transformation of the traditional tourism product “sun and beach” into a series of products of higher value, more focused, and centered on:
- Themed “sun and beach” tourism
- Maritime tourism
- ‘City Break’ tourism
- Cultural and religious tourism
- Medical tourism
- MICE tourism
- Integrated resorts – vacation homes
- Cruise ship / ship company
Personal opinion
As we are slowly entering winter, the fourth wave of COVID-19 is on the rise and is testing the endurance of all of Europe. Travel restrictions may affect and deter potential investors from risking losing their money. This is definitely one side of the coin, but on the other side, the road is wide open for the adventurous to find huge investment opportunities with high future returns. If you are one of them and want to invest in Greece, our team can help you find the areas where there are potential investment opportunities. Do not hesitate to contact us, our team is always available to offer you the right advice and help you invest safely.