Foreign investment in Greek real estate has seen a sharp rise in 2024, according to new figures released by the Bank of Greece. Investment reached €2.75 billion – a 30% increase compared to 2023. Meanwhile, many Greek residents continue to struggle to find affordable housing. In fact, Greece topped the EU in 2023 for the highest housing cost burden in urban areas, with 31% of people spending over 40% of their income on housing.

Bank of Greece governor celebrates sale of public property

Bank of Greece Governor, Yannis Stournaras, highlighted the growth of foreign direct investment (FDI), reaching €6 billion in 2024 – the second highest level in the past 20 years. Much of this investment has gone into real estate, which accounted for nearly half of all foreign capital.

Stournaras presented the privatisation of public assets – essentially, selling them to foreign buyers – as a success, citing improvements in the business environment and upgrades to Greece’s economic rating as key reasons for investor interest.

Property market continues to boom

The report emphasises strong demand across all sectors of the property market, with prices continuing to rise, especially in modern and high-specification homes. There has been a notable focus on properties intended for investment rather than long-term residential use.

Construction activity for residential housing has also increased, though it remains below pre-crisis levels. While building costs are still going up, the rate of increase has slowed slightly. In the commercial property sector, prices – particularly for premium buildings – have also gone up.

Golden visa drives foreign demand

A large portion of the foreign interest is linked to Greece’s Golden Visa programme, which offers residency to non-EU citizens who invest in property. Many rushed to invest before the minimum investment thresholds increased.

Between 2023 and 2024, nearly 17,888 properties were purchased through the programme, amounting to a minimum of €4.47 billion in investment.

Updated Golden Visa requirements:

  • In major areas like Athens, Thessaloniki, Mykonos, and Santorini, the minimum investment is now €800,000.
  • Elsewhere in the country, the threshold is €400,000.
  • Investments must be in a single property of at least 120 sq.m.
  • Properties bought through the scheme cannot be used for short-term rentals (like Airbnb), and if converted to housing, they cannot be used for business purposes.
  • Violation of these rules can result in a €50,000 fine and loss of residency rights.

Housing still out of reach for locals

While foreign investment is booming, housing remains unaffordable for many Greeks. Apartment prices have risen by 8.7% in 2024 alone, following significant increases in previous years. Newer properties saw even higher price hikes.

In 2023, Greece ranked worst in the EU for housing cost burdens in urban areas. While the EU average was just over 10%, nearly one in three urban residents in Greece spent more than 40% of their income on housing. Rural areas were similarly affected, with Greece again topping the charts.

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