Foreign cash goes to realty

Investment in local property market accounts for over 62 percent of all FDI in Greece.

The upward trend in capital inflows from abroad for the acquisition of real estate continues this year, as, according to Bank of Greece data, a total of 1.9 billion euros has been invested in the first nine months of this year, an amount that is 17% higher than the same period in 2023. Given that inflows had totaled €2 billion in 2023, it is obvious that 2024 will mark a historic high in foreign investments in the property market.

This picture is now also reflected in the course of foreign direct investments, where real estate has reached 62% of the total. BoG data show total FDI in January-September amounted to €3.1 billion, falling by 15% on an annual basis, to continue the downward trend of recent years. In the same period last year, foreign investments had amounted to €3.66 billion, while in 2022 it was €6.43 billion.

This development, combined with the increase in property investments, has made FDI dependence on the real estate market much higher than normal, against a rate of 20-25% of FDI in previous years.

As of 2025 a significant reduction in real estate purchases by foreigners is expected, due to the changes imposed on both the Golden Visa and short-term rentals. As market executives stress, these restrictions will mitigate investment demand from abroad and some time will be required to adapt to the new data, as the mix of foreign investors who will express interest in investing in the Greek market is expected to change: Instead of smaller investors being interested in an apartment, investors are expected to gradually begin to flow in to participate in real estate development projects, residential, touristic, logistics and other categories of real estate, along with those looking for a property for their own use, with holiday homes in the foreground.

Such investments have much greater added value for the economy than the purchase of a ready-made property; however, it will take a lot of time for such projects to mature. Still, it is obvious there will be a slump in all FDI if the negative course to date is not reversed.

Source: https://www.ekathimerini.com/economy/real-estate/1257375/foreign-cash-goes-to-realty/