The most profitable industries to invest in Greece
According to data recently published by the Hellenic Statistical Authority (ELSTAT), the total value of exports-dispatches in 2018 amounted to €33,417.9 million, in comparison with €28,877.4 million for the corresponding period of the year 2017, recording an increase of 15%.
This article concentrates on sectors with promising opportunities for investments.
1. Real estate
Real estate is considered to be the most profitable industry to invest in Greece. According to the official data recently published by the Bank of Greece, foreign investment in Greek real estate grew by 94.6 % during the first half of 2019, compared to the same period in 2018. Between January and June of 2019, more than €736 million was invested by non-Greek nationals in the country’s real estate market. This development becomes even more impressive, considering the amazing growth of the Greek real estate market, as it reached €1,72 billion in 2018, presenting an increase of 172%, in comparison with the figures in 2017.
2. Tourism sector
The recent impressive performance of the Greek tourism sector has attracted the interest both of domestic and foreign investors. Over the past two years, €3.8 billion were invested in the development, as well as in the reconstruction and modernization of existing hotel facilities. It is worth mentioning that five-star and four-star hotels accounted for 41,3% of these investments. These figures are included in the most recent report by Algean Property based on the information provided by INSETE (Institute of the Association of Greek Tourist Enterprises).
The total number of hotel chains operating in Greece is 209 (+5.6% increase compared to 2017), ranking 4th overall in Europe, behind Spain (253), Italy (240), and Germany (222). According to Global Review Index, which is used for an assessment of an individual hotel or group of hotels, as well as to compare results between properties or against competitors and track the evolution of a hotel’s performance in the long run, for 2018, Greece recorded the highest score in the Mediterranean with 86.3%. As far as the highest level of tourist satisfaction is concerned, it was recorded in Santorini (89.2%), followed by Mykonos (88.5%), Sardinia (85.1%), St. Tropez (85%) and Ibiza (83.8%).
3. Energy sector
Greece enjoys more than 250 days of sunshine a year and has many areas of strong winds. Subsequently, the country possesses significant untapped generation potential, particularly in renewable sources, which can significantly improve the energy structure of the EU.
The Greek Ministry of Environment and Energy, together with the Ministry of Economics and Development, has initiated several major investment projects, including the TAP-IGB-EastMed pipelines, The Revithoussa LNG Terminal (a new liquefied natural gas terminal) and major investments in RES Invest (an energy company specialized in energy production from renewable sources). This, in conjunction with the updated energy investment regulatory framework, provides exceptional opportunities for investment in all energy sectors.
4. Logistics sector
Greece stands on the crossroad of three continents, namely Europe, Asia, and Africa. For that reason, Greece is positioned to play a particularly significant role in the transportation sector of the region.
Maritime transport is the most important mean of global freight transport, accounting for 80 % of global trade by volume and over 70 % by value. Container throughput in South-East Mediterranean ports, for example, has been growing at more than 8% annually. At the same time, trade flows between Asia and the EU are also expected to grow by 7% annually in the coming years.
In this context, Greece’s geographical position as a gateway between East and West renders it extremely attractive for investments in logistics and transport to take advantage of the constantly increasing trade flows in an efficient and cost-effective way.
Apart from the abovementioned fields, the agricultural sector (especially olive oil production), food industry, information and communication sector also attract significant investor interest.
Investment opportunities in Greece, and especially in Athens, have become more and more common due to the economic upswing the country experiences as it recovers from the financial crisis. Investments, especially in the real estate sector, draw the attention of many investors due to the fact that such investments lead to the acquiring of a Greek residence permit via the Golden Visa program.
However, the key to a profitable investment long term is the selection of a reliable and trustworthy partner, experienced in the field, and with years of interaction with the country and its people. “DKG Development” fits all the criteria perfectly and can apply its expertise in order to help you secure a profitable investment.