With Chinese capital, the rally in the real estate market

In 2023, the Greek real estate market is experiencing stable growth in investments, with a total capital flow reaching a record 2.13 billion euros. This amount highlights the ongoing trend of increasing investments in real estate in Greece from citizens of non-EU countries, while investments from EU countries have decreased. According to information provided by the Bank of Greece, the volume of investments from non-EU countries reached 1.48 billion euros, which corresponds to an increase of17.4%compared to 2022, when this figure was 1.26 billion euros. In contrast, investments from the European Union, both within and outside the eurozone, decreased to649 million eurosthat on7.2%less compared to last year.

It is important to note that the Greek real estate sector played a key role in strengthening foreign investments in the country in 2023, which was reflected in47%from the total volume of investments in the economy, amounting to4.48 billion eurosAs in the previous year, the main buyers of real estate remain investors from Hong Kong, who largely represent Chinese capital. These two regions, along with China itself, have invested a total of460 million euroswhat corresponds62.2%all investments from outside the EU and21.5%from the total volume of foreign investments in Greek real estate.

Nevertheless, it will be quite difficult to replicate the growth level achieved in 2022. That year, Hong Kong's investments amounted to294 million eurosthat has increased by254%compared to the previous year, while in 2023 the growth was only10.2%what gave the final results324 million eurosAt the same time, there is a noticeable increase in interest from investors in Turkey, who invested in 2023.107 million euros...which secured the country sixth place in the ranking, with an increase of...132%compared to the previous year.

Switzerland maintains its second position on this list, with investments in271 million eurosthat on51.3%more compared to 2022, when the total volume amounted to179 million eurosIt should be noted that this does not necessarily mean that real estate buyers are Swiss.

On the other hand, investments from the USA have fallen by10.2%and composed149 million eurosExperts link this decline to the worsening economic situation in the U.S. and high interest rates that are limiting the purchasing power of potential investors. Additionally, there is a significant drop in interest from French investors.48%, composed43 million euros, and35.8%— from investors in the United Arab Emirates, many of whom prefer to buy luxury country residences.

It can be concluded that the "golden visa" program had a significant impact on the flow of investments in 2022 and 2023. This trend is expected to partially continue in 2024, especially until August 31, when the deadline for investors wishing to register transactions under the current conditions will expire. After this date, the minimum investment amount will increase to800 thousand euros (from the current)250 or 500 thousand eurosdepending on the region) in places like Attica, Thessaloniki, and islands with a population of at least3,100 peopleIn the other regions of the country, the limit will also increase from250 thousandto400 thousand eurosThis will obviously lead to a significant decrease in investment demand, which is already excessively high for this reason.

These changes will have a direct impact on both the overall volume of foreign investments in Greek real estate and their geographical sources, as buyers from non-EU countries currently dominate the market.