HOSPITALITY & RETIREMENT VILLAGES: AN ENGINE OF LOCAL GROWTH
The world is living through a pandemic that has already lasted for more than one year and which will reshape world economies and social behavior for several years to come. Greece has been no exception to this and, although it
has dealt with the pandemic in a relatively successful way compared to comparable countries, its economy — already hit by a ten-year debt-driven recession — has suffered considerably. Its landmark industry, tourism, took a huge blow in 2020 and will be considerably underperforming in 2021.
Despite such an economic blow, investment opportunities appear possible in exploiting the country’s “God-given” advantages. The huge globally emerging market of “Retirement Living” is one of them. Retirement Villages can be a “win-win” case for all involved (end users/retirees, professionals involved, developers, and investors, etc.), providing the economy with much needed liquidity and a multiplier effect that is anticipated to impact the entire region where those villages are to be developed.
Why this “niche” market segment? Because Greece:
Here are some economic and social advantages related the development of such villages:
Incentives provided to retirees willing to move to Greece are in two directions that
can be implemented or even combined depending on the profile of the interested party, considering that: (a) No visa is needed for citizens of an EU country, Iceland, Norway, Lichtenstein or Switzerland, (b) Non-EU citizens can enter with a “D” type visa, (c) US citizens can enter for 90 days with no visa or with a visa for >90 days.
The main incentives are:
The Developer / Investor side:
Product exists, yet the anticipated demand will require new investments as well as refurbishment of existing ones. Developers can look forward to healthy profit margins on properties for sale, and attractive yields for properties that will be leased. Newly, carefully designed projects, will elevate the “retirement facility” product to new needed levels.
An Economic, Social and Environmental Impact Assessment of a Typical Retirement Village, English Care Villages Ltd. 2016.
Economic Impact: The Senior Living Effect, Argentum, June 2019.
Making the case for retirement villages, Karen Croucher,
Joseph Rowntree Foundation.
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