The Greek residential real estate market has transformed significantly in recent years, experiencing steady growth and strong interest from foreign buyers. Today, international investors drive approximately 80-85% of residential property transactions, particularly in desirable locations like Athens, Crete, and the Aegean islands. This surge in foreign demand has played a critical role in Greece’s real estate recovery, benefiting both the property market and the tourism industry.
Steady Year-on-Year Growth
Over the last five years, the Greek property market has demonstrated consistent year-over-year growth. Since 2018, property prices have risen by an average of 7-10% annually, with peak years, such as 2022, witnessing increases of up to 12% in areas like Athens. This steady rise underscores the resilience of the Greek real estate market following the challenges of the previous decade.
The market reached a low point in 2013 during Greece’s economic crisis, with property values dropping by over 40% in some regions compared to pre-crisis levels. Although prices have steadily recovered since then, they remain below their pre-crisis highs. The national average stands at about €1,500 per square meter, which is still below the EU average of €2,000 per square meter. Prime areas in Athens, such as the southern suburbs, now average around €3,750 per square meter.
New Requirements for the Golden Visa Program
The Golden Visa program has been pivotal in attracting foreign investment by offering residency to non-EU nationals who invest in Greek real estate. However, recent adjustments have raised the minimum investment threshold in high-demand areas. Previously set at €250,000 nationwide, the minimum investment now stands at €500,000 in parts of Athens, Thessaloniki, and selected islands, with some exclusive suburbs requiring investments up to €800,000. Despite these changes, interest in the program remains strong, as it continues to provide valuable EU residency benefits.
Key Drivers of Real Estate Investment in Greece
Several factors make Greece an attractive destination for real estate investment:
- Competitive Pricing: Even with recent price increases, Greek property remains affordable compared to other European markets, especially in popular urban and coastal regions.
- High Demand for Short-Term Rentals: Greece’s thriving tourism sector fuels demand for short-term rental properties, offering good returns for investors, particularly in popular city and island locations.
- Lifestyle Appeal: With its mild climate, stunning landscapes, and rich cultural heritage, Greece is highly appealing to investors seeking vacation homes or long-term residences.
- Residency via the Golden Visa: Despite the increased investment threshold, the Golden Visa program continues to be a strong incentive, granting property owners EU residency access.
Conclusion
Greece’s residential real estate market has shown robust growth, supported by strong international demand and competitive pricing compared to other European markets. With the Golden Visa program still attracting investors, Greece remains an appealing choice for those seeking both investment and lifestyle opportunities.
