The real estate market in Greece represents approximately 25-35% of the total foreign investments in all sectors in the country annually. According to the latest reports published, the Greek real estate sector is experiencing a highly positive period that exceeded expectations, Net foreign investment in the Greek real estate market in 2021 reached 1.1 million euros, marking a 34.4% increase compared to the previous year. Below is a comprehensive overview of the development of the real estate sector in Greece over the years up to the present day.
From the beginning of the 1990s – 2008
From the beginning of the 1990s until 2008, the Greek real estate market evolved alongside the country’s economic expansion. The global financial conditions, characterized by low interest rates and increased household income, led to a surge in economic activity, resulting in a higher demand for property ownership among investors who saw attractive and secure opportunities for substantial financial gains.
Due to this interest, real estate agents reported a 30% to 40% increase in house prices and projects near coastal areas in 2004. Meanwhile, house prices in the capital, Athens, experienced an 11.2% rise in 2006.
Launching the Golden Visa Program
With the global financial crisis in 2008, the Greek government and authorities sought to take serious and resolute steps, One of the most prominent measures was the launch of the Permanent Residency Program in Greece through real estate investment. The Greek government announced this program in 2013 to boost the country’s economy, offering the opportunity for qualified investors and their families to obtain permanent residency.
Many investors from around the world have shown significant interest in this program, attracting investors from China, Russia, Arab countries, and other non-European Union nations. The program has contributed to over 1.5 billion euros flowing into the Greek real estate market in just the past five years.
It has also played a significant role in revitalizing the construction sector, leading to the emergence of new projects and buildings in previously uninhabited areas, These areas now feature various types of residential and commercial properties, representing a rapid leap in the Greek real estate market’s development. This has been driven by the interest of investors who see it as a long-term opportunity and investment, aiming to achieve financial returns from it.
Since 2017 – now
At the beginning of 2017, Greece entered a phase of recovery and confidence-building in its economic situation, which was evident across all sectors and aspects, This included an increase in GDP growth, a decrease in unemployment levels, and a resurgence of consumer confidence.
The economic situation gradually improved with promising growth rates, reaching 1.5% in 2017, 1.9% in 2018, and 2019. After the COVID-19 pandemic and with the gradual reopening of the world and the relaxation of movement restrictions, along with the incentives provided by institutions to investors, Greece was one of the countries that managed to withstand crises, and there was a revival in economic activity once again.
According to the latest data published, real estate market sales in Greece reached 374 million euros in just the first quarter of 2022, marking an increase of 74.8% compared to the same period last year.
These percentages and figures demonstrate Greece’s ability as a country and its institutions to withstand crises and difficulties, providing a safe environment for investors’ projects and investments. This has made Greece the most popular and preferred choice for many investors from around the world who are looking to improve their families’ lives and take advantage of the positive opportunities it offers.
At Reach Real Estate Investment, we have experience and expertise in the real estate sector, with branches spread around the world. If you are interested in real estate investment options in Europe, you can get your free consultation and contact us through the link provided here.