Following the idleness of the investment community recorded during 2020 due to the pandemic, 2021 seems to show improving statistics from foreign investors in Greece. The pandemic introduced new trends and practices to the investment sector which seem to be absorbed by the local situation. Undoubtedly, Foreign Direct Investments (FDI) will be of key importance for the forthcoming financial post-Covid rebound.
A credible research conducted by the yearly EY Attractiveness Survey by Ernst & Young, shows the trends influencing investment decisions in global and European level, focusing their impact to the attractiveness of Greece as an investment destination, as well as the future course of foreign direct investments in Greece. Based on EY European Investment Monitor (EIM), an extensive database with data collected by monitoring investments in projects which result to new constructions and employment spots, Greece has presented an inclining course in regards to Foreign Direct Investments (FDI) since 2019. More specifically, Greece attracted 22 FDIs during 2019, while this number climbed to 39 during 2020. The 2020 records pushed Greece – for the first time – in the 23rd place among the 51 countries included in the EY European Investment Monitor (EIM), while during 2021 the country is listed within top 10 most attractive European investment destinations. Despite this outstanding improvement, it is clearly evident that competition is also rising, since other European countries mark equally high – or even higher – percentages.
The newly founded positive attitude of businesses who were not interested in domestic market until now, seems to be significant for the rapid growth in investments. The sectors of Industry, Informatics and software services have expanded in Greece. The progress is verified by 34% of the research participants, who declared that their business intends to develop or expand their operations in Greece, a percentage which is 6% higher than 2020 (28%).
The “outgoing” attitude of the Greek market as well as its attractiveness would not have emerged without governmental contribution, and more specifically a leniency policy with flexibility expressed in multiple political and socio-economical State decisions. First of all, the infrastructure in transfers, logistics and telecommunications, as well as human resources skills have been of crucial importance, since they are key aspects of the country’s attractiveness. Secondly, from a political and governmental scope, the favorable treatment of property acquisitions and investments has been supported actively, pursuant to legislative and ministerial decisions facilitating the Golden Visa scheme and property transfers, which resulted to foreign capitals being active on domestic level.
On the contrary, however, the domestic situation still has a lot of improvement potentials, either regarding current “black areas” or in order to get ahead of rapid environmental and technological evolvement. Indicatively, the current defaults of domestic market are business taxation and flexibility of labor law, while political decisions shall be issued following a consideration of global trend towards sustainability and “clean” technology. The latter consist major criteria for businesses in order to develop or expand their activities, not only within Greece, but within any country.
It is now clear that Greece is being established as an attractive investment destination. Of course, an improvement to the country’s optics depends on multiple aspects such as social, financial and political features, which are equally important and definitive. The period between 2020 and 2021 was just an introduction to the promising investment growth which is greatly anticipated by the investment community.
If you are interested in a property acquisition and investment in Greece, do not hesitate to contact our experienced team at info@georgakilawfirm.com