Energy crisis in Europe has shaken things up. The war in Ukraine made things even worse. And as you can see, living costs have gone up. However, as with almost every economic crisis there are always opportunities for investment.
Energy crisis has increased inflation rates causing a domino of effects that surely affect all aspects of financial growth and development. The housing market has been hit but with different degrees in European countries.
In the recent past, various crises arose that affected developments on the real estate market. Above all, the COVID19 pandemic ensured that the situation on the international financial markets and in the economy became more tense. This resulted in falling incomes and thus less purchasing power. There are different forecasts as to how real estate prices after the pandemic will develop. What is certain, however, is that the demand for housing remains high. However, a shift in interest and a stronger focus on rural regions can be observed.
Energy crisis – An opportunity to invest in real estate (?)
1. The demand for housing is not weakening
Current market developments show that demand for housing remains at a high level. In Greece in particular, housing prices may have gone up but they are still at affordable levels and with great potentials.
2. Tangible assets can help to manage inflation risk
The rising inflation rate is causing money to devalue, while at the same time tangible assets are increasing. This creates lucrative prospects for potential property owners.
Generally speaking, the rise in energy prices, high inflationary pressure and effects on consumer spending provides opportunities for property investors.
Less competition in the housing market presents opportunities to obtain properties at better value and reduces the chances of being outbid.
As people evaluate their finances, it creates the likelihood that more people will be looking for rented properties as mortgages become more difficult to obtain. This creates increased demand in the buy-to-let market.
Rents and house prices in the EU have continued their steady increase
…but Greece is the exception.
When comparing the first quarter of 2022 with 2010, house prices increased more than rents in 19 EU Member States. According to Eurostat House prices increased in 24 EU Member States and decreased in three, with the highest rises in Estonia (+174%), Hungary (+152%) and Luxembourg (+131%). Decreases were observed in Greece (-23%, see notes), Italy (-10%) and Cyprus (-8%).

Sustainability as a solution
Now more than ever, the benefits of energy conservation and sustainability are visible, according to Buijs. “Due to the high energy costs, the payback time of sustainability measures is shorter. This makes it attractive, for example, to purchase LED lighting, put solar panels on the roof and install intermediate meters to make one’s own energy consumption transparent.”
In conclusion, there is still time to invest in real estate in Greece and capitalize on this opportunity. And to do this all you need is AV Properties to guide you through.