The upward trajectory of the continued in 2023 real estate investments in Greece from citizens of non-EU countries, while on the contrary investments from EU countries they retreated. Based on the detailed data of the Bank of Greece (Bank of Greece), in 2023 investments from countries outside the E.U. reached 1.48 billion euros, marking an annual increase of 17.4% compared to 2022, when they had reached 1.26 billion euros. On the contrary, investments from EU countries both inside and outside the Euro Zone, amounted to 649 million euros, being 7.2% lower on an annual basis.

It is recalled that in total in 2023, 2.13 billion euros of capital flowed into the Greek real estate market, constituting a new historical high (from 1.97 billion euros in 2022). At the same time, the real estate market had a decisive contribution to the overall “rescue” of foreign investments in the country during 2023, as the sector’s total contribution amounted to 47% of the total of 4.48 billion euros invested in the Greek economy last year .

As in 2022, so in 2023 the largest category of buyers came from Hong Kongwhich essentially translates into Chinese capital, which is largely true for the Singapore. Cumulatively, these two countries together with China made total investments of 460 million euros, which constitute 62.2% of all investments between non-EU countries, but also 21.5% of all funds from abroad, which flowed into the Greek real estate market.

However, it appears that it would be extremely difficult to repeat the rise seen in 2022, which was the first year of full recovery of foreign investment after the pandemic. At the time, funds from Hong Kong alone had risen to €294 million, up 254% year-on-year, while in 2023 the increase reached 10.2%, with the final amount being €324 million.

The Turkish market is also proving to be particularly dynamic. In 2023, 107 million euros of capital were invested, bringing the neighboring country to the sixth highest position, as the annual increase reached 132%. In 2022 it was in 13th place, with the total amount reaching 46 million euros, while in 2021 the corresponding amount had not exceeded 9 million euros. Before the pandemic, the best annual performance was in 2017, when 32 million euros were invested.

In the second place of the relevant list is still the Switzerland and indeed with a significant increase of 51.3% from 2022, as the total funds reached 271 million euros, from 179 million euros in 2022. It is noted that this does not mean of course that the buyers of the properties are Swiss. On the contrary, given that the country hosts deposits from investors of various nationalities, it is obvious that something similar is happening with capital inflows to Greece for the real estate market.

On the contrary, with a drop of 10.2%, 2023 ended in terms of investment activity in the Greek real estate market from the USA, at 149 million euros. Executives of the real estate market attribute this development to the gradual deterioration of the climate in the American economy and high interest rates, which limited the purchasing power of prospective investors. A significant drop of 48% was also noted by buyers from France (43 million euros), as well as those from the United Arab Emirates (-35.8%), many of whom choose luxury holiday homes.

The conclusion from the origin of the investment funds is certainly that the “golden visa” program played a decisive role in both 2022 and 2023. Something similar is expected to happen – but to a lesser extent – also during 2024, especially until the 31 August, when the deadline for investors to secure (through a preliminary agreement) real estate based on the existing terms of the program expires. From September 1, the minimum investment amount will increase to 800,000 euros (from 250,000 or 500,000 euros which is currently, depending on the region) in Attica, Thessaloniki and the islands with a minimum population of 3,100 inhabitants. In the rest of the country the limit will also increase from 250,000 to 400,000 euros.

These changes are expected to drastically reduce investment demand, which is currently artificially increased for this very reason. This will have a direct impact both on the total amount of investment funds flowing into Greece for the real estate market, as well as on the proportion of origin, as buyers from non-EU countries are currently dominant.

Source: moneyreview