15 Sep The Greek real estate market is an investment “Eldorado” for foreigners
It combines low prices compared to what is happening abroad and the possibility of future capital gains
For Greek standards, the purchase of a new house is becoming increasingly difficult, due to the rise in prices and the increase in interest rates. However, for most foreign buyers Greece is an investment “paradise”, as it combines low prices compared to what is happening abroad, a stable politico-economic system and the possibility of future capital gains.
In this year’s global survey by CIA Landlords Insurance, one of the UK’s largest online providers of landlord property insurance, it was reported that Athens is the cheapest city to buy a home. Specifically, the average selling price in the city center of Athens is €1,940/sq m, when the next closest city is Madrid, Spain, at €3,190/sq m.
According to the price indices of the Bank of Greece, in the period 2017-2023 in Attica there has been a cumulative increase of 68%, while at a national level the increase was almost 50%. However, a relevant analysis by the National Bank of Greece states that prices in the country as a whole are still 14% below the highest point they reached in the third quarter of 2008. At the same time, prices in the rest of the Eurozone are 37% higher than in 2008, making the comparison particularly favorable for the Greek market. This explains the sharp increase in foreign investment in recent years. During the period 2018-2022, foreign direct investment in Greece reached 3.5 billion euros, accounting for 25% of the total number of residential transactions carried out on an annual basis. The buying interest comes both from investors interested in acquiring property for themselves, as well as from third country nationals who expect to secure a residence permit through the “golden visa” program, but also to position themselves in a market with properties that have the potential to offer high returns.
According to Ofer Reshef, business development director of Arledan Group, a company active in the Greek real estate market, “in the case of Israeli investors, the preference for the Greek real estate market is due to the low investment threshold, the geographical proximity, as well as the similarities between the culture of the two nations.“ At the same time, another reason is the prospect of future capital gains in comparison to Israel, as even today prices in the Greek market appear on average 14% lower than at the peak of the market in 2008.
Apart from Athens, it is possible that in the coming years other cities in the country will attract investors’ attention. The criterion will be low cost, as there is a category of buyers in Europe who are looking for the lowest possible purchase prices in order to capitalise on future gains and at the same time make a profit from the exploitation of an apartment in a country with lot’s of sunshine and a vibrant nightlife.
 The present constitutes a summary of the article entitled “ The Greek real estate market is an investment “Eldorado” for foreigners” published in the newspaper “Kathimerini” on 14.09.2023 available in Greek at: https://www.kathimerini.gr/economy/562607668/ependytiko-elntoranto-gia-xenoys-i-elliniki-agora-akiniton/ .