V2 DEVELOPMENT HAS BECOME THE LEADING DEVELOPMENT COMPANY IN GREECE. CAN YOU TELL US MORE ABOUT YOUR MAIN PROJECTS?

 

V2 Development is focused on residential property development which is an increasingly attractive segment due to Greece's growing tourism appeal to investors, especially those seeking holiday homes. According to the Greek law, buyers acquiring properties that were built or granted a building permit from 2006 onwards have to pay a value-added tax (VAT) of 24 percent, with the exception of Greeks acquiring their main residence. We have identified a market niche in the refurbishment of older or unfinished properties allowing buyers to capitalize on the benefits of a modern development, while staying clear of unwanted tax levies. As the refurbishment is made in properties with building permits obtained before 2006, we are able to give our clients affordable developments without the VAT. Currently, our international clientele corresponds to 95 percent of our portfolio. 

 

Greece's real estate market lost 27 percent of its value since 2008 until July of 2015. The market has been recovering with a steady increase and reached around 6 percent until today. Demand is picking up at the fastest pace since the economic recession. I believe that in the next three to four years, the market will recover to pre-crisis levels, which is probably around 18 to 20 percent. The most significant growth in the sector will be reflected across Athens’ south-eastern suburbs, including Paleo Faliro, Alimos, Hellinikon, Glyfada, Vouliagmeni and others. This is mainly due to the long-awaited Hellinikon development which is considered to be the biggest real estate project in Europe. The €8 billion investment on the site of the former airport will have a multiplier effect on numerous sectors, ranging from tourism and construction to, without any doubt, real estate.

 

Previous to 2008, the real estate sector was a main growth engine of the Greek economy, accounting for an estimated 20 percent of GDP. This figure plummeted during the crisis, with investments shrinking by two thirds.

 

GREECE HAS IMPLEMENTED ONE OF THE MOST COMPETITIVE RESIDENCE-BY-INVESTMENT PROGRAM IN THE WORLD. V2 DEVELOPMENT IS RESPONSIBLE FOR MOST OF THE DEALS IN THE COUNTRY, WHAT IS THE MAIN REASONS FOR YOUR SUCCESS?

 

At the end of 2008, we started seeing the first signs of the crisis in Greece, and we decided to search and find alternatives to getting clients. As a result, we have pursued a radical change of our company's strategy – from being entirely focused on domestic clients to becoming the partner of choice for international investors seeking to tap into Greece's Golden Visa Program. This program was launched in 2013 and provides visa access across Europe with a minimum investment in property of €250,000. It has been a huge success overtook the US as the largest golden visa program in the first 11 months of 2018, having issued 9,756 golden visas compared to 9,602 conditional green cards. V2 Development has been responsible for the large majority of deals made under this program in Greece. 

 

 

“IF COMPARED WITH OTHER EUROPEAN COUNTRIES IT BECOMES CLEAR THAT GREECE'S GOLDEN VISA PROGRAM IS BY FAR THE MOST ADVANTAGEOUS ONE.” 

 

 

If compared with other European countries it becomes clear that Greece's Golden Visa program is by far the most advantageous one. This competitive edge goes beyond investment minimums – the threshold is €300,000 in Cyprus and €500,000 in both Spain and Portugal. The true advantage is derived from the excessively low property prices that were brought about as a consequence of the Greek crisis. This gives the opportunity to have huge yields on potential investments. The Golden Visa Program has been a key driver of Russian, Turkish, and Chinese investments in the Greek real estate sector. Greece has issued golden visas to almost 2,000 Chinese investors in the first 11 months of 2018. This is more than 4 times as many as those granted to Russian investors, which were the second leading source of investment in the sector. Today, a golden visa holder spends an average of €330,000 on residential real estate. This is the reasons why most of our developments are focused on properties ranging between the €250,000 and €350,000 mark.

 

We have decided to pursue an internationalization process of our company through the creation of offices in key markets worldwide. From the start, we established our first offices in China and today we have offices in Beijing, Shanghai, and Guangzhou, covering all parts of the country. Today, we have a strong presence also in Vietnam, Thailand, Malaysia, Singapore, and the Philippines. We are now looking closely to the Latin America market with the opening of a new office in Brazil. We also work with partners in other key markets to expand our presence internationally to Russia, Ukraine, Egypt, Lebanon, and the United Arab Emirates as well.

 

THE COMPANY HAS BEEN A PIONEER IN GREECE'S REAL ESTATE SECTOR. WHAT IS THE FUTURE FOR V2 DEVELOPMENT? 

 

V2 was established in 1962 by my father – who was also named Vaggelis -- and it was initially called Ergon Development. My father was a pioneer in creating new communities by buying huge pieces of land, dividing them into lots and providing the necessary infrastructure, as electricity, water and roads. This is the perfect timing for investing in Greece's residential real estate market and I'm confident that V2 Development will play a key role in shaping the sector's future.