The interest of foreign investors in the Greek real estate market is great, as shown by the recent data of the Bank of Greece, as in the first three months of 2023 almost 500 million euros flowed into the country, an amount that is increased by 33% compared to the corresponding quarter last year.

At that time, 374 million euros had been invested. According to recent research, one in two foreign real estate buyers preferred Greece for the purpose of investment, while one in five proceeded to buy for owner-occupation.

From these data it follows that our country is one of the most attractive destinations for foreign buyers. It is worth noting that in recent years, a large percentage of foreign buyers choose to purchase residential real estate in our country either for tourist reasons or for a permanent stay after their retirement.

Of great interest are the qualitative characteristics of the same survey, which record the profile of foreign buyers in our country, including their nationality and age, the value and the type of real estate they choose.

Important facts that emerged from the research are the following:

– Undoubtedly, Israel has taken the top spot among the five most popular nationalities of foreign buyers.

– 4 out of 10 buyers are in the 40 to 50 age group.

– 3 of the 10 properties selected for purchase were worth up to 100,000 euros

– Apartments were the most popular option at 46%.

Top 5 countries with the greatest buying interest

Among the five most popular nationalities of foreign buyers in Greece, Israel ranks 1st, followed by China and Germany in 2nd and 3rd place respectively. The top five is completed with Bulgaria and Turkey. Purchases were also recorded from other countries with dominant EU countries, Italy, France and the Netherlands and the United Kingdom from non-EU countries.

In 2022, foreign investment in the real estate market reached 2 billion euros, an increase of 68%, which at the same time was a historical high.

As reported by TTE, during the first months of 2023 the Greek real estate market continues to record high rates of price growth (14.5% in the first quarter nationwide and 11.7% overall in 2022), as a result of strong demand and the limited supply of modern real estate. In fact, according to the relevant analysis, “the low supply of modern properties gradually leads to the diffusion of price increases to properties of lower technical specifications”.
On the other hand, however, it seems that the increase in interest rates has started to create “dams” in price increases. Specifically, the total amount of new mortgages decreased by 7.2% on an annual basis during this year’s first four months (January – April), compared to an increase of 67.3% in the corresponding period last year. At the same time, there is a decrease in mortgage demand for four consecutive quarters, after two years of continuous growth.

The BoE concludes its analysis by stressing that “the real estate market will continue to be under pressure from increased inflation and interest rates, tight funding, high energy and material costs and broader geopolitical uncertainty.

These conditions, combined with the downward correction of values that is already taking place internationally, are estimated to turn investment interest towards sustainable investments and towards properties with lower operating costs, greater flexibility and quality levels that will ensure the generation of income and capital gains for a long time time horizon. The Greek real estate market, presenting important peculiarities in relation to the rest of the real estate markets in Europe, is estimated to continue to maintain its attractiveness, especially for its high-quality stock”.
High interest from foreigners in the second home market

The second home market is on the rise with foreign buyers in popular tourist destinations including the Athenian Riviera.

An auxiliary factor is the increase in tourism, as well as the prices that remain lower than those of corresponding other European destinations. The high demand and growing popularity of the country will likely lead to further price increases especially in the areas where there is a lack of supply.

 

Source Capital.gr