Property lures foreign billions

• 3 April, 25

Greece’s real estate sector now accounts for nearly half of all investment from abroad

Realty has become Greece’s primary magnet for foreign capital, with nearly half of all foreign direct investment (FDI) over the past two years flowing into property acquisitions, particularly residential realty. According to a recent analysis by the Center for Planning and Economic Research (KEPE), the share of real estate in total net FDI has skyrocketed over the past decade. In 2013, only 7.4% of foreign investment went into real estate, but by 2018, that figure had surged to 33.5% and remained above 30% between 2019 and 2020.

After dipping to 22% in 2021 and 24.6% in 2022 – due to a spike in overall FDI inflows, which reached 7.5 billion euros in 2022 – real estate investment rebounded in 2023. As total FDI fell to €4.48 billion, the share of real estate investments rose to 47%, reaching €2.1 billion.

The trend is expected to continue in 2024 despite a strong rise in total FDI in the final quarter. According to Bank of Greece data, total FDI for 2024 reached €5.98 billion, nearly doubling from the €3.1 billion in the first nine months. This surge was largely driven by Masdar’s €2.5 billion acquisition of Terna Energy and Blackstone’s €235 million purchase of the Grand Hyatt Athens.

A major factor behind the increase in property investment has been Greece’s Golden Visa program. In 2024, 9,411 initial investor residence permit applications were submitted – an 11% increase from the record 8,477 applications in 2023. Since 2022, the program has brought over €4.47 billion in foreign capital into Greek realty.

The government has progressively raised the minimum investment threshold for the program, prompting a rush of foreign investors securing permits before the changes took effect. Market analysts expect investment activity to stabilize in 2025, shifting from speculative Golden Visa-driven purchases to more traditional real estate transactions. However, demand remains strong for properties in areas such as the Athens Riviera, luxury vacation homes, and serviced apartments, which offer attractive returns and are not subject to short-term rental restrictions.

Cre: ekathimerini