The interest of foreign investors in the Greek real estate market is great. In recent years, a large percentage of foreign buyers have chosen to purchase residential property here either due to changes in the Golden Visa program or for permanent residence after retirement.
Investments by foreigners in the real estate market are not only related to obtaining a residence permit, but also to other moves, such as the purchase of a country house.
Real Estate: What areas are foreigners investing in now and what properties are they buying
As shown by the data cited by the Bank of Greece (BoG) in the latest interim monetary policy report, in 2022 alone and in the first nine months of 2023, foreign direct investment in the real estate market amounted to 2.9 billion euros.
“During the 9th month of 2023”, notes the central bank, “foreign direct investment in real estate reached a net income of 1,644 million euros, which exceeded by 28.7% the corresponding level of income recorded in 2022 (1,277 million euros)”.
According to the Bank of Greece, the Greek real estate market attracted considerable investment interest, despite the negative development in the international environment and the uncertainties arising in the last two years from increasing geopolitical instability.
As stated by the Bank of Greece, “despite the current uncertainty, the housing market remains dynamic and is characterized by strong demand and low supply, mainly due to investments.
The positive trend of tourism and short-term rentals, preferential housing programs for young people and increased investment interest from abroad in the purchase of real estate, including the “Golden Visa” program, continue to strengthen the dynamics of the market, as recorded by other relevant indicators”.
Foreign investors
After all, a Berkshire Hathaway HomeServices report estimates that the influx of high-income buyers to the Greek real estate market will show a 20% increase in 2023, reaching 1,200 investors.
The Greek market is ranked 7th in the world ranking of the most popular countries for purchasing luxury homes. The Greek market actually outperformed both Portugal and Spain, which were ranked 9th and 14th respectively.
Another important takeaway from the company’s Greek report is the 15%-20% increase in American buyers compared to 2022. American buyers are targeting properties on the Athenian Riviera, the northern suburbs of Attica and popular islands such as Mykonos, Santorini and Paros in the Cyclades, Crete , Corfu and Rhodes.
Role of Golden Visa
An important role in this year’s increase was played by the deadline that the investors of the “golden visa” program had to secure a residence permit with the status of 250,000 euros. Since the beginning of August, the minimum investment limit in the most popular areas for foreigners has been doubled to 500,000 euros.
The change affects the center of Athens, the southern and northern suburbs, the municipality of Thessaloniki, Mykonos and Santorini. From the beginning of 2023 until August 1, there was an investment “frenzy” on the part of those interested in order to secure a property in areas of high demand without having to spend at least 500,000 euros.
This year there was also high demand from buyers from EU countries. for the purchase of a holiday home both on the popular islands and on the Athenian Riviera. Industry actors therefore estimate that the year 2023 will mark a new historical high in terms of foreign investment in the real estate market, which may approach 3 billion euros.