The latest trends and developments in the Greek real estate market

The Greek real estate market has been experiencing a remarkable recovery and growth since 2017, after a decade of crisis and decline. The market has shown resilience and dynamism, even during the Covid-19 pandemic, thanks to the increasing demand from foreign buyers, the improving economic conditions, and the government’s support measures. In this blog post, we will explore some of the latest trends and developments in the Greek real estate market, based on the most recent data and statistics.

• Rising prices and demand: According to the Bank of Greece, the average price per square meter of urban residential property rose by 11.32% year-on-year in Q3 2022, reaching €1,480. This was the highest annual increase since Q4 2006. The price growth was mainly driven by the strong demand from foreign buyers, especially due to the Golden Visa Program, which offers residency to non-EU investors purchasing or renting property worth over €250,0002. The total value of real estate purchases by foreign buyers, which accounts for 80% to 85% of all real estate purchases in Greece, soared by 60.2% year-on-year to €1.28 billion in the first three quarters of 20221. For the whole year of 2022, foreign buyers’ property purchases are expected to reach €1.7 billion, surpassing the €1.45 billion recorded before the pandemic. The rising prices and demand reflect the attractiveness and competitiveness of the Greek property market, which offers high-quality properties at affordable prices compared to other European destinations.

• Regional variations: The price and demand growth was not uniform across the country, but varied according to the location and type of property. The most popular and profitable types of properties to invest in are apartments in Athens and Thessaloniki, as well as villas and hotels in the islands. Athens recorded the highest annual price increase of 13.02% in Q3 2022, followed by Thessaloniki with 11.07%, while other cities (excluding Athens and Thessaloniki) saw a lower increase of 9.39%. The islands also witnessed a significant price appreciation, especially Crete, Rhodes, and Corfu. The regional variations reflect the different preferences and needs of buyers, as well as the different supply and demand conditions in each area.

• Economic recovery and support: The Greek economy has also been showing strong recovery and resilience, after suffering a severe contraction due to the pandemic. The real GDP grew by 8.4% in 2021 and is projected to grow by another 6% in 2022, supported by government stimulus measures, tourism, and exports2. The government has also implemented various policies and programs to support the real estate sector, such as tax incentives, subsidies, grants, loans, and guarantees5. The National Recovery and Resilience Plan (NRRP), which is funded by the EU Recovery Fund, allocates €6.8 billion for green transition projects, including energy efficiency upgrades, renewable energy sources, smart grids, and electric mobility. These initiatives aim to enhance the sustainability and competitiveness of the Greek property market, as well as to create jobs and income opportunities for the population.

• Future outlook: The outlook for the Greek real estate market is optimistic, as key market drivers show signals of further strengthening, creating expectations for further growth. The demand from foreign buyers is expected to remain high, as Greece offers attractive investment opportunities and quality of life. The economic recovery is expected to continue, as vaccination rates increase and pandemic restrictions ease. The government support measures are expected to boost the supply and quality of properties, as well as to foster innovation and digitalization. The Greek real estate market is expected to enter a new phase of development and maturity, offering significant benefits for investors, owners, tenants, and visitors alike.

If you are interested in investing or renting a property in Greece, or if you need any help or advice on managing your property in Greece, feel free to contact us at Peace of Mind Property Management Service. We are a professional and experienced team that can take care of all your property needs and give you peace of mind.