For many, when we think of the Greece economy a dark memory of the 2009 financial crisis looms. While the country’s reputation may still be burdened by that turbulent period, the current day reality is starkly different.
Now, more than a decade and a half later, Greece hasn’t only weathered the storm, but successfully stabilized the economy. The property market sector in particular is, well, booming. In the face of a struggling world economy, Greece emerges as a compelling investment destination.
The Greece property market has experienced steady growth over recent years, backed by government measures designed to maintain stability. The Greece Golden Visa is a standout opportunity for foreign investors to acquire residency. Under the Golden Visa program, foreign nationals can secure residency in the country by investing as little as €250,000 in Greek property. Under specific conditions, this residency can eventually pave the way to obtaining a Greek passport.
Let’s address the pivotal question for those exploring residency or citizenship by investment opportunities. Is the Greek property market a sound investment beyond gaining EU residency. The answer is a resounding — yes. Let’s delve into why Greece’s property market stands out as a promising opportunity.
The battle against inflation and the ascent of interest rates have set the stage for a consistent uptick in real estate prices in Greece since 2021. Throughout 2022, the per- square-meter cost in the country saw an approximate 8-10% increase.
Initial data from Alpha Bank for the first quarter of 2022 paints an optimistic picture of the local real estate market. Revealing robust annual growth in housing investments at 18.6%, while nominal residential property prices showed a year-over-year increase of 8.6%.
As we approach the second half of 2023, Greece has witnessed a substantial volume of real estate transactions, with both local and international investors participating. Statistical evidence solidifies the notion that Greece's real estate market is in a flourishing state with considerable growth primarily driven by heightened interest from foreign investors.
In layman’s terms, Greece is currently a real estate paradise. The Greece property market offers a diverse array of properties for sale, commercial spaces and rental apartments. Athens specifically takes the crown for its variety and multifaceted property landscape.
When it comes to Greece’s dynamic property market, not all growth is created equal. The data reveals intriguing disparities. Studies reflecting the close of 2022 show that older apartments experienced a solid growth rate of 10.5%, whereas newer developments soared even higher at an impressive 12.2%. No doubt, the Athens' real estate scene is a captivating tale of diversity and growth!
The Central Bank reports that foreign investors' participation in the real estate market in 2022 surged by 60% in comparison to the corresponding period in the prior year, with a total investment amounting to around 1.28 billion euros.
Golden Visas have been a limb propelling the growth of the real estate market. In the first half of 2023, foreign nationals pursuing the program poured more than €1 billion into property investments. This amount represents an impressive threefold increase compared to the corresponding period in the prior year when it stood at €361 million.
In July 2023, the Greek government put new rules into place, raising the minimum investment threshold in popular areas of North, South and Central Athens, Mykonos, Santorini, and the Municipalities of Thessaloniki and Vari. The aim of the implementation is to maintain property affordability for Greek citizens and avoid an excessive influx of foreign investment within these regions. Even with the price hike, the €250k minimum investment requirement remains in effect for a majority of Greece territory.
The variation in the Greece property market growth rates extends beyond property type to location. Athens emerged as the frontrunner in year-on-year apartment price growth, boasting and impressive 13% increase.
Meanwhile in Thessaloniki, Greece’s second- largest city, the growth rate stood at a substantial 11.1%. It’s evident that Athen’s is poised to maintain its position as the driving force in the Greek real estate market through 2023.
The Athen’s real estate market presents a wealth of opportunities to potential buyers. Given the city's substantial size and diversity, an extensive array of property types appeals to investors. From timeless standalone villas, commercial properties or shares in hotels — All variations seamlessly merge into the city's iconic skyline. In the capital tradition meets innovation with grace.
Undoubtedly, Athens offers a diverse and dynamic market to explore. As per the new golden visa rules, investors pursuing the Golden Visa, the threshold to invest in the majority of Athens is now €500k. (Still incredibly reasonable for a capital city.) Although, the up-and-coming neighborhood of Piraeus still offers Golden Visa properties at a 250k minimum.
Caxton’s partner, Lincoln Global Partners boasts an extensive Greece property portfolio in both up-and-coming areas and affluent well-established Greece destinations.
Greece, renowned as a top-tier tourist hotspot, presents an irresistible opportunity for property investment. For those with solid financial foundations seeking the perfect blend of comfort and exclusive natural experiences, investing in coastal Greek properties is an alluring prospect.
Greece offers competitive advantages, particularly in terms of attractive pricing, compared to several European destinations considerably farther away. All this is within arm's reach of the enchanting Aegean Sea's turquoise waters.
Greece's tourist season spans over five months, commencing in May, hitting its zenith in July and August, and gracefully concluding in October. Hospitality and tourism are deeply ingrained in Greek culture and upbringing.
During the summer tourist season, restaurants, bars, taverns and cafes come alive, welcoming visitors around the clock. One of the safest investments in Greece is acquiring property for rental purposes, assuring a guaranteed return and income when managed efficiently. Imagine planning a family vacation while renting out your property for the remainder of the season. Whether for short, medium, or long-term rentals, Greek properties can yield up to an impressive 10% return on an annual basis, calculated as the ratio of property price to realized profit.
Greece anticipates a gradual increase in the price per square meter over the next three years, expected to rise by approximately 35-40%. This robust projection offers the assurance that, in just three years, you'll be in a position to sell your property at a significantly improved price point. Greece truly offers a golden opportunity for property investment and appreciation.
Lincoln Global Partners assists global citizens on their investment abroad journeys. Contact Caxton’s partner today for a free 30-minute consultation to discuss your investment options in the Greece property market.
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