Greek house prices continue to accelerate, amidst strong demand from foreign homebuyers, growing residential construction activity, and continued economic growth in the country.
In Greece’s urban areas, house prices soared by 10.76% in Q1 2024 from a year earlier, following year-on-year increases of 12.48% in Q4 2023, 13.05% in Q3, 15.22% in Q2, and 15.91% in Q1, according to figures released by the Bank of Greece. It was the tenth consecutive quarter of double-digit house price growth.
When adjusted for inflation, urban house prices rose by 7.31% y-o-y in Q1 2024.
On a quarterly basis, house prices in Greek urban areas increased by 2.4% (2.76% in real terms) in Q1 2024.
Despite the strong growth, Greek house prices remained relatively lower than most of European countries – attracting many foreign investors into the country.
“Real estate prices in Greece remain lower compared to many countries abroad, which acts as a magnet for foreigners who are not only looking to secure returns, but also wish to relocate to a popular tourist destination. At the same time, Americans’ and Britons’ goal of securing visas has dramatically strengthened the demand from these countries,” said Kosmas Theodoridis, the president of the European Real Estate Brokers Association.
The property market accounts for about 20% to 35% share of total FDI in Greece annually. During 2023, net foreign direct investment (FDI) for the purchase of real estate rose by 8% y-o-y to €2.13 billion, following annual increases of 68% in 2022 and 34.4% in 2021 and a decrease of nearly 40% in 2020. It is now the highest level recorded in more than two decades.
Then in the first half of 2024, net FDI for real estate purchases increased by 3.6% to €1.14 billion as compared to the same period last year.
But even before the Covid-19 pandemic, foreign investment in real estate in Greece had been rising strongly. Net FDI for real estate surged by 45.3% in 2016, 86.5% in 2017, 172.1% in 2018, and another 28.5% in 2019.
According to an earlier Ernst & Young investment report, Greece remains resilient and attractive to foreign investors, despite the uncertainty of the international environment. Part of this is due to the Golden Visa Program.
As of October 2024, there were 12,577 Golden Visa applications, up by 12% from 11,229 applications in the same period last year, according to the country’s Ministry of Migration.
