Foreign Investment in Greek Real Estate Slows Down

• 21 December, 25

This year, foreign investment enthusiasm in the Greek real estate market has noticeably cooled. According to Balance of Payments data from the Bank of Greece, the share of real estate within foreign direct investment (FDI) has declined.

Declining Share of Real Estate in Foreign Investment

Data shows that in the first half of the year, total foreign investment in the Greek economy reached €2.8 billion, of which €938.3 million—or 33.4%—was directed toward real estate.

While this remains a relatively high proportion, it represents a 42.2% decline year-on-year.

• In the first half of last year, real estate accounted for 57.8% of total FDI
• Foreign real estate investment amounted to €1.14 billion
• Total FDI during that period stood at €1.974 billion

According to the latest third-quarter data, total foreign investment in Greece has surged to €8.6 billion this year. However, since real estate investment has not grown at the same pace, its share of total FDI is expected to decline further.

Consecutive Decline in Foreign Real Estate Investment

Quarterly data confirms a continuous downward trend in foreign investment in Greek property:

• Overall first-half decline: –17.6% year-on-year
• Q1 investment: €356.8 million, down 31.6% year-on-year
• Q2 investment: €581.5 million, down 6.5% (from €622 million last year)

These figures indicate that foreign capital is slowing its pace of entry into the Greek real estate market, even though investment activity continues.

Shift Toward Long-Term and High-End Property Investments

According to industry professionals, the nature of foreign real estate investment in Greece is changing.

Investment strategies are shifting away from short-term speculative plays

Greater emphasis is being placed on long-term holding strategies and asset quality

At the same time, demand for holiday homes and luxury residential properties has increased significantly, becoming a new focal point for international investors.

Golden Visa and Short-Term Rental Investments Normalize

Investments aimed at securing residency permits (Golden Visa) or short-term rental income remain present, but have begun to return to more normal levels.

In the previous two years—particularly before policy tightening in 2024—regulatory changes triggered a surge in foreign buying activity, leading to a period of investment overheating.

Data shows that by October this year, applications for permanent investor residence permits (Golden Visa) had declined by 12% year-on-year, signaling a cooling of demand in this segment.

Overall, foreign investors are not exiting the Greek real estate market, but rather adjusting strategies, slowing investment pace, and prioritizing higher-quality assets.

As the policy environment stabilizes and the market matures, Greek real estate is transitioning from a phase of rapid speculation to a more rational, long-term development cycle.

Cre: Ekathimerini