The importance of location when buying a house in Greece

The location of a property in Greece is of great importance for buyers, investors and sellers, as it is one of the most decisive factors for valuation and pricing. Read this blog to learn all about choosing a good location for purchasing a plot or house in Greece.

Real estate valuation Greece

If you want to have your property valued in Greece, the location obviously plays a decisive role. The total price of a property is made up of the price of the land and the value of the house. The location of the property in Greece is the unchangeable factor in this calculation and is therefore of the utmost importance. All factors related to the building, such as the layout of the building, its size or its state of repair, are variable. It may well be that in a prime location in Greece, the piece of land is more relevant to determining the price than the building on it. Consequently, this means that in a less attractive location, the total price will be determined more by the house or building than by the value of the land.

Micro and Macro Location and Their Categories

Real estate experts in Greece further divide location into microlocation, which characterizes the immediate conditions on the spot, and macrolocation, which refers to the wider spatial environment, such as the neighborhood or region. For the purchase and sale of real estate in the residential or apartment sector, locations are usually classified into four categories, depending on the assessment of micro and macro location. These range from prime location to good, average and secondary location. Commercial real estate is also divided into categories. A prime location is classified as 1A, followed by 1B, 2A and 2B. There are also C and D locations.

The location of a property in Greece is also a key investment consideration

Properties in good and prime locations are expected to retain their value and, in the best case, increase in value. Therefore, they are more expensive. For investors, it is always important to consider secondary locations in Greece, as these can mean lower purchase prices and higher rental yields in the initial phase. However, appreciation is less likely.

Location factor for private home purchase in Greece

If you are changing location privately and the macro-location has been assessed, it is advisable to take a closer look at the micro-location before buying a property in Greece. Consider which factors make a dream location for you personally. Do you see yourself in a well-developed, lively urban area with shopping facilities within walking distance, or is a quiet street with no through traffic more suitable for you? Or perhaps you prefer a secluded location in the middle of Greek nature? How important is the distance to the supermarket to you, and do you value public transport or motorway connections?

Location assessment for now and the future

Since real estate investments in Greece are intended for the long term, it is important when looking for a suitable location for your future building plot to assess the location not only for now, but also for the coming years. Here it is advisable to consult as many sources of information as possible. For example, check development plans at the relevant building regulations office. Are there already approved major construction projects in the area? Use the current rental indexes and standard land values ​​​​as a guide. The latter refers to the land price in a certain area and is recalculated regularly. This will give you an idea of ​​the future development potential.