Foreign Investors Drive Growth in Greece's Real Estate Market

07:59 28/10/2024 - Πηγή: iEfimerida

Foreign investors are flocking to Greece's real estate market, particularly in the holiday home sector, where prices have soared.

According to Giorgos Gavriilidis, CEO of Elxis Greek Real Estate Services, properties

with two to three bedrooms and a small pool are selling for between €270,000 and €370,000, accounting for 80% of sales.

Buyers typically hold these homes for five to ten years before reselling, indicating strong demand. This trend mirrors broader growth in the real estate market, which has risen for seven consecutive years.

Lefteris Potamianos, president of the Attica Real Estate Agents Association, noted a consistent uptick in demand, while Dimitris Melachrinos, Co-Founder and CEO of Spitogatos Group, reported a 7% increase in property prices in the third quarter of 2024, driven by the principles of supply and demand.
The surge in demand for student housing and the traditional summer season boost have contributed to rising rental and sales prices across Greece.

SPI data shows that average asking prices for residential properties increased by 6.8% year-on-year in Q3 2024, while average rental prices rose by 7.6%.
Areas such as the southern suburbs of Athens, the Cyclades, and Piraeus are now the most expensive regions for purchasing homes. These areas also dominate the rental market, with Halkidiki experiencing rising prices due to short-term rental pressures.

Ιndustry leaders stress the need for regulatory clarity to maintain this positive momentum.

At the recent Prodexpo conference, various representatives highlighted the urgent need to address institutional and legal challenges that could jeopardise investor confidence.

Despite concerns about the housing market, particularly regarding short-term rentals, Konstantinos Kiamas from STAMA argued that these rentals are not the root of the housing crisis.

He noted that only about 1% of the country’s housing stock comprises short-term rentals, with over 20% of homes in Athens remaining vacant.
However, the declining rate of homeownership—currently at 69.6% nationally and 64% in Athens—raises alarms. Vasiliki Vlachostergiou from the Bank of Greece pointed to rising property values and decreased disposable income as key factors in this trend.

She emphasized that property values have surged by 90% in Athens since 2017, while the issuance of new building permits has stalled, leading to a significant housing shortage.
As foreign investors continue to see Greece as an attractive destination, the market’s future hinges on addressing regulatory uncertainties and fostering conditions that promote sustainable growth

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