Foreign investments: 2.133 billion euros for real estate purchases

Greece(BoG), net proceeds from acquisitionsreal estateby foreign nationals remains high as a percentage of all investments (42.5%) and exceeds 2 billion euros, up 8% compared to 2022 (2,133 million euros compared to 1,975 million euros).

Expectations for the Greek real estate market remain moderately positive in the near term as uncertainties related to geopolitical instability at the global level remain significant, BoG said in a report published on Monday.

High inflation and construction costs together with high interest rates affect the profitability of investments and increase the required income from the real estate sector, which may gradually affect the prices of the home market, greatly strengthened by foreign investments.

However, in the short term and assuming continued strong demand from abroad, prices are expected to continue their upward trend in the premium market segment, also affecting prices in secondary markets.

It is noted that “the serious housing cost problem noted in recent years, as a result of the extensive investment exploitation of housing, raises important questions about possible government interventions.

Interventions to strengthen the supply and limit the demand for residential investmentreal estate(short-term rentals, Golden Visa) in primary residence areas will moderate price growth and possibly lead to price corrections at the local level.”