According to Bank of Greece (BoG), the net receipts for the purchase of real estate from foreign nationals are still high as a percentage of all investments (42.5%) and exceed 2 billion euros, up 8% compared to 2022 (2,133 million euros compared to 1,975 million euros).
“Expectations for the Greek real estate market remain moderately positive in the near future, as the uncertainties related to geopolitical instability at the global level remain significant,” according to a BoG report released on Monday.
High inflation and construction costs along with high interest rates affect the investment profit margin and increase the requested yields from the real estate sector, which may gradually affect the prices of the domestic market, significantly fueled by foreign investments.
In the short term, however, and as long as overseas demand remains strong, prices are expected to continue their upward trend in the high-end segment of the market, also affecting prices in the secondary markets.
It is stated that “the serious problem of housing costs recorded over the last years, as a result of the extensive investment exploitation of the residence, raises important issues for the possible adoption of measures by the state.
Interventions in the direction of strengthening the supply and limiting the investment demand for residential properties (short-term leases, Golden Visa) in primary residence areas are estimated to moderate the price growth and possibly lead locally to price corrections.”
