by admin Greece is one of the most attractive destinations for foreign buyers
The interest of foreign investors in the Greek real estate market is great. In recent years, a large percentage of foreign buyers choose to purchase residential real estate in our country either because of the changes in the Golden Visa program or for permanent residence after their retirement. The investments of foreigners in the real estate market do not only concern the securing of a residence permit, but also other moves, such as for example the acquisition of a country house.
As shown by the data cited by the Bank of Greece (BoG) in the latest Interim Report on Monetary Policy, in 2022 alone and in the nine months of 2023, foreign direct investments in the real estate market amounted to 2.9 billion euros. “During the 9th month of 2023”, notes the Central Bank, “foreign direct investments in real estate amounted to net receipts of 1,644 million euros, exceeding by 28.7% the corresponding level of receipts recorded in 2022 (1,277 million euros)”. According to the Bank of Greece, the Greek real estate market attracted significant investment interest, despite the negative developments in the international environment and the uncertainties arising during the last two years from the intensifying geopolitical instability.
As the Bank of Greece points out, “the housing market, despite the current uncertainties, maintains its momentum and is characterised by strong, mainly investment, demand and low supply. The positive trend of tourism and short-term rentals, subsidized housing programs for young people and increased investment interest from abroad in purchasing real estate, including the “Golden Visa” program, continue to strengthen the dynamics of the market, as recorded by others relevant indicators”.
Foreign investors
After all, a Berkshire Hathaway Home Services report estimates that the influx of high-income buyers into the Greek real estate market in 2023 will show a 20% increase, reaching 1,200 investors. The Greek market is in 7th place in the world ranking of the most popular countries for the acquisition of luxury homes. In fact, the Greek market surpassed both Portugal and Spain, which were in 9th and 14th place respectively. Another important takeaway from the company’s Greece report is the 15%-20% increase in American buyers compared to 2022. US 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.
The role of the Golden Visa
An important role in this year’s increase was played by the deadline that the investors of the “golden visa” program had in order to secure a residence permit with the status of 250,000 euros. From the beginning of August the minimum investment limit in the most popular areas for foreigners was doubled to 500,000 euros. The change concerns the center of Athens, the southern and northern suburbs, the Municipality of Thessaloniki, Mykonos and Santorini. Thus, from the beginning of 2023 until August 1st, there was an investment “frenzy” by those interested, so that they could secure a property in the areas of high demand without having to spend at least 500,000 euros. This year also saw a high demand from buyers from EU countries. for the acquisition of a holiday home both on the popular islands and on the Athenian Riviera. Thus, industry representatives estimate that 2023 will mark a new historic high in terms of foreign investments in the real estate market, which may even approach 3 billion euros.
Source: Andromachi Pavlou, 25/12/2023
https://www.ot.gr/2023/12/25/oikonomia/akinita-sta-164-dis-eyro-oi-ksenes-ependyseis-to-2023/