Slower realty investor inflow

Foreign real estate investments have recorded their first decline since 2015, as, according to Bank of Greece (BoG) data, capital inflows in the first half of this year amounted to 938.3 million euros, which represents a 17.6% drop on last year (€1.14 billion). Nevertheless, unlike in the first three months of the year, the second-quarter drop was significantly smaller. In January-March foreign capital had shrunk 31.6% to €356.8 million, while in the second quarter, the annual drop was just 6.5% to €581.5 million (from €622 million).

From 2010 to 2024, the course of foreign investments in realty has been steadily upward, with the exception of 2015, with the capital controls, and 2020, with the pandemic. Annual inflows started from just €63 million in 2010, at the start of Greece’s debt crisis, and reached a historic high of €2.75 billion last year.

However, despite the decline in January-June, this year’s performance is viewed positively, since it could be much higher, if we take into account the restrictions imposed on the Golden Visa program and short-term rentals, which have become significant attractions for foreign buyers in recent years.

For example, during the January-July period, applications for residence permits through the Golden Visa program continued to record an increase of 5.8% compared to the same period last year.

Still, it should be noted that this is mainly attributed to the large increase in the first two months of 2025, when applications increased by 56% year-on-year, due to the fact that interested parties had until the end of February to formalize the purchase and sale of property and apply for the permit under the previous regime.

According to market sources, demand from abroad is focused on the acquisition of a holiday home in areas with lower tourism and more affordable prices, or in luxury constructions on the Athenian Riviera, which exceed the minimum threshold of €800,000, so they are suitable both for investment and for a residence permit. Another source of demand is the acquisition of serviced apartments in various areas of Attica.

Source: eKathimerini.com