Off-plan and under-construction Greek property — risks for foreign buyers.

Off-plan and under-construction property offers what looks like a sensible value proposition: pay before completion, lock in a fixed price, get a modern home built to current standards. The reality involves specific risks that don't apply to resale property — and Greek developer practice has its own particular patterns worth knowing.

What "off-plan" and "under-construction" actually mean in Greece

• Off-plan (αγορά εκτός σχεδίου): Building permit issued, construction not yet started or in very early stages. Purchase based on architect's plans and 3D renders.
• Under-construction (υπό κατασκευή): Building actively under construction, partial work visible. Purchase based on what's built plus committed remaining work.
• Pre-completion / shell-and-core (κέλυφος): Building structurally complete but interior finishing not done. Buyer either takes from this stage or pays for finishing.

All three carry payment-before-completion risk. The intensity varies.

How a typical Greek off-plan transaction is structured

The standard payment schedule:

• 10-20% on signing the preliminary agreement (προσύμφωνο). Held in escrow or paid directly to developer depending on arrangement.
• Staged payments tied to construction milestones — typically foundation, frame complete, exterior shell, interior fit-out, completion. Each stage triggers another 15-25%.
• Final 10-20% at handover — usually at notary closing of final deed transfer.

Until the deed transfers, the building (or land + partial construction) is owned by the developer. Your payments are claims against the developer, secured (or not) by various legal mechanisms.

The risks that don't apply to resale

1. Developer insolvency

If the developer fails financially before completion, buyers face the possibility of losing deposits with limited recovery. Greek developer-failure cases over the past 20 years — particularly post-2008 crisis — left some buyers with partial structures, no completion, and limited legal recourse. Recovery typically comes through bankruptcy proceedings; outcomes vary widely.

2. Completion delays

Greek construction routinely runs late. A "12-month" completion in the contract often becomes 18-24 months. For buyers planning to use the property by a specific date (rental income, retirement move, family event), the slippage matters financially and emotionally.

3. Specification creep down

What you saw in the renders and read in the spec sheet often differs from what's actually delivered. Reduced-cost substitutions, "value engineering" changes, removed features. Some changes are minor; some are material. Greek contracts vary in how tightly they bind the developer to specific finishes.

4. Permit irregularities discovered late

Sometimes the developer's permits don't cover everything that gets built. Buyers can find at handover that what was promised isn't legally permitted. Resolution may require permit modification at the buyer's cost.

5. Common-area completion failures

For multi-unit developments, the common areas (lift, lobby, garden, pool, parking) sometimes lag the individual unit completions. Buyers move into apartments while the building looks like a construction site for another year.

6. Final-stage payment disputes

The final 10-20% payment is supposed to trigger handover and deed transfer. Disputes arise when buyers find defects at final inspection. Greek contracts vary on the dispute-resolution mechanism.

Specific protections to negotiate into your contract

Working with an independent lawyer (not the developer's lawyer), the protections that matter:

• Escrow-held deposit. The initial 10-20% should sit in an escrow account at a recognised bank, not in the developer's operating account. Release triggered by specific construction milestones, not by developer request.
• Personal guarantee from developer principals. For smaller developers, a personal guarantee from the principal(s) is meaningful protection in failure scenarios.
• Bank guarantee (εγγυητική επιστολή). Some larger developers offer bank guarantees covering buyer deposits. Verify the bank, the amount, the conditions for calling on the guarantee.
• Detailed specification annexed to the contract. Not "high-quality finishes" — specific brand and model for kitchens, sanitaryware, flooring, paint, windows, heating. Substitutions only with buyer agreement.
• Completion date with penalty clauses. Specific completion date with daily-rate penalty for late delivery beyond a defined grace period.
• Handover acceptance procedure. Defect list at final inspection, retention of 5-10% of final payment until defects resolved.
• Building-permit and Ktimatologio status verified pre-signing. Permit issued, plot Ktimatologio-clean, no encumbrances on the land.

What due diligence should look like before signing

1. Developer due diligence. Other projects completed by this developer — visit them, talk to owners about their experience. Greek developer reputation is local; people know.
2. Financial status of the developer. Filed accounts, debt level, ongoing project portfolio. Smaller developers running multiple simultaneous projects on tight finances are higher risk.
3. Site visit and permit review. Walk the construction site. Verify the permit covers what's being built. Check building permit number against the urban planning office records.
4. Contract review by your independent lawyer. Standard developer contracts strongly favour the developer; negotiation is normal.
5. Project insurance verification. The construction itself should be insured (workplace, third-party-liability, all-risks). Confirm policy in place and adequate.
6. Visit the local urban planning office. Verify the permit, any neighbour objections, any compliance flags on the parcel.

When off-plan makes sense and when it doesn't

Off-plan makes more sense if:

• The developer has a strong, verifiable track record on prior completed projects
• You're getting a meaningful price discount versus equivalent completed property
• You can afford to lose the deposit (worst-case insurance)
• The location has strong fundamentals — prices will support resale even if your specific project disappoints
• You're willing to engage actively through 18-24 months of construction

Off-plan makes less sense if:

• The developer is new, small, or has any prior project failures
• You're paying full-completion price for off-plan timing
• You're stretching your budget to the limit (no buffer for delays or overruns)
• Location is uncertain or speculative (resort developments in early phases, emerging neighbourhoods)
• You don't have local representation to oversee construction milestones

Our role for off-plan / under-construction buyers

For diaspora buyers committing to off-plan, we can provide construction-period oversight as a defined service: monthly photo-documented site visits, verification of milestone completion against payment schedule, defect logging at handover, post-completion baseline establishment. Typically €150-€300/month during construction depending on project complexity and visit frequency.

Related reading

• New build vs resale for foreign buyers
• Buying property in Greece — true costs
• Greek property scams
• Ktimatologio due diligence
• Renovating Greek property from abroad — handbook
• Virtual property viewing — diaspora playbook