Real Estate: Why Foreigners Continue to Invest in Greece - Economic Courier - ot.gr

In 2024, the Greek real estate market will continue to attract the attention of international investors. The recovery of Greece's economy, the growth of tourism, government subsidies, and the Golden Visa program are creating an appealing environment for investments. According to Alpha Bank, the construction sector in the country maintained its momentum in 2023, and the volume of foreign investments in real estate, thanks to the increase in the number of applicants for the Golden Visa, exceeded1.6 billion euros.

The amount of investment in residential real estate has shown an increase of33.7%in 2022 and on40.2%In the first three quarters of 2023, investments in other construction projects also increased, which grew by9.5%and5.5%Accordingly. The results for the first nine months of 2023 show that all investments in the construction sector amounted to about84%from the total volume for the entire previous year, which corresponds to an increase of approximately16%compared to the same period in 2022.

Real estate prices in Greece remain more affordable compared to other European countries, which attracts even more foreign investors. According to a report by Berkshire Hathaway HomeServices, the number of wealthy individuals looking to purchase property in Greece in 2023 may increase by20%, reaching1200Investors. The Greek market ranks seventh in the world in popularity for acquiring elite residential real estate, surpassing both Portugal and Spain, which are in ninth and fourteenth places, respectively.

Another important aspect is the fact that the number of American buyers has increased by15-20%Compared to 2022, investors from the USA are focusing on purchasing real estate in places such as:

• Athens Riviera
• northern suburbs of Athens
• popular islands: Mykonos, Santorini, Paros, Crete, Corfu, and Rhodes

It is also worth noting that the growing tourism in Greece plays a significant role in increasing interest in real estate. From January to November 2023, according to the latest data from INSETE, there were registered23.5 millioninternational air passengers, which is on11.6%more compared to the same period in 2022.

The Golden Visa program is also becoming an important indicator of demand for real estate from foreign buyers. According to the latest data from the Ministry of Migration, from January to November 2023, there have been submitted9,459applications for permanent investment, which on117%more compared to the same period in 2022. The number of applications for initial receipt amounted to7,752that corresponds to investments in real estate in the amount of no less than1.9 billion eurosThe program has attracted more than5 billion eurossince its launch in mid-2014.

Increasing the minimum threshold for obtaining a Golden Visa to500,000 eurosIn popular investment areas such as central, northern, and southern Attica, as well as Mykonos, Santorini, and the Thessaloniki region, there has been a growing interest in lesser-known regions like Piraeus, where the limit remains at a certain level.250,000 eurosAccording to the Spitogatos Property Index (SPI), Piraeus and its suburbs have shown an increase in real estate prices.23.2%and25.6%Accordingly, becoming the leaders in Attica in the last quarter of 2023. On average, the asking price per square meter in Piraeus is about2,175 euroscompared to1,765 eurosa year earlier. In the vicinity of the country's largest port, the average price now reaches1,800 eurosper square meter, which is higher than1,433 eurosfor a square meter in the fourth quarter of 2022.