George Kachmazov – Investor, founder and managing partner at Tranio.com, international real estate platform
Greece’s real estate market is one of the remaining few in Europe that hasn’t recovered since the 2008 economic crisis. Prices in other markets such as Spain, Portugal, Ireland, Poland and Hungary have returned to pre-crisis levels because of high liquidity in Europe. This represents a unique market opportunity that can generate high rental yields and capital gains.
We have already positioned ourselves in Athens by buying a building in the Exarchia neighbourhood and we are currently in the process of acquiring five more, all around the city centre (for one we have already placed the down payment and the other four are undergoing due diligence.)
Our business strategy in Athens comes in several stages: buy buildings below the market price, refurbish them, rent out units out on a short-term basis, achieve a high rental yield in hard currency and sell these properties to international investors from developing markets who are looking for a Golden Visa with a very attractive yield of 7%.
The country’s residence-for-investment scheme is the best in Europe as it’s cheap at 250,000 euros, given the upside potential of these investments.
The profile of buyers are people who want an EU residency (via Golden Visa scheme) and an income from renting property out. Their nationalities are mainly Russian, but also include Turkish, Arabs and Chinese. These people want to diversify away from local risks and get an income in hard currency.
Looking ahead, we aim to participate in Greek real estate e-auctions and acquire properties directly from banks.
Our business strategy in Athens comes in several stages: buy buildings, refurbish them, rent out, achieve a high rental yield and sell these properties to international investors looking for a very attractive yield.
We’re looking at buying buildings for less than 1,000 euros per square meter of useable area, but will consider as much as 2,000 euros before renovation work. We initially plan to invest 8 million euros over the next 3 to 4 months with the aim of staying in Greece for at least the next 3 to 4 years.