Following a prolonged financial crisis, Greece’s economic recovery has significantly progressed in recent years, leading to a resurgence in the real estate market. This revival is not just a mere uptick but a significant surge, evident in rising property prices, increased transaction volumes, and growing interest from foreign investors. Prominent areas such as Athens and Thessaloniki and popular islands like Crete, Mykonos, and Santorini have experienced a substantial increase in real estate activity.
With its unique blend of sun, sea, and mountains, Greece’s natural allure continues to be a significant catalyst for real estate market growth. Athens, in particular, is a perennially popular city-break destination, boasting a wealth of historical heritage, a vibrant culture, and the picturesque Athenian Riviera. The country’s thriving tourism industry has been a key driver of real estate demand, especially in sought-after locations. The enduring popularity of Greece as a tourist hotspot ensures a steady demand for both residential and commercial properties, making it an attractive investment opportunity.
This upward trend in the real estate market is fueled by various factors, including, among others, recent economic growth rates, increased construction investments, and foreign direct investments (FDI) in real estate. According to a National Bank of Greece (NBG) report, FDI in residential real estate totaled EUR 3.5 billion from 2018 to 2022, accounting for roughly 25% of all residential real estate transactions during this period. Despite the global uncertainties of 2024, including conflicts in the Middle East and Europe and the upcoming challenging elections in the United States, Greece remains a stable and attractive investment destination. The Greek real estate market’s resilience is evidently contributing to its growth potential.
Transformative Development and Government Reforms Propel Greek Property Growth
Extensive real estate development and infrastructure projects currently under construction or planned for the next few years also boost the market. For example, the Hellinikon Metropolitan Park project is one of Europe’s most ambitious and transformative urban regeneration initiatives. Located in the southern suburbs of Athens, this EUR 8 billion real estate project aims to revitalize the former Athens International Airport site, covering an extensive area of approximately 6.2 million square meters. The Hellinikon project is designed to create a new urban hub that combines residential, commercial, and recreational spaces and is expected to impact the local and national economy profoundly.
Additionally, the Greek government’s proactive measures to streamline bureaucratic processes have significantly improved the efficiency of property transactions. The ongoing digitalization of public services, including the land registry and notarial services, has led to reduced delays and increased transparency. Moreover, the government has introduced a range of attractive tax incentives to entice foreign investment. These include a flat tax rate and exemptions on income derived from foreign sources, making Greece an even more appealing investment destination for non-Greek residents.
Golden Visa Program Fuels Real Estate Revival
Last but not least, the highly successful Golden Visa program has thus far significantly contributed to these investments. The Greece Golden Visa program initially required a minimum investment of EUR 250,000 in real estate. In 2023, this threshold was increased to EUR 500,000 in various municipalities of Greece, including Athens, Thessaloniki, Mykonos, and Santorini. Recently, the government announced further increases in the minimum property investment threshold, effective August 31, 2024. The minimum property investment thresholds will rise again to EUR 400,000 for areas currently requiring EUR 250,000, and EUR 800,000 for areas currently requiring EUR 500,000. Greek residency through this program grants access to the European Union and Schengen area member countries. This makes it especially attractive to third-country nationals seeking global mobility. The program continues to draw significant interest from investors.
Conclusion
Overall, one can say that the Greek real estate market is experiencing a remarkable resurgence, bouncing back from the shadows of past economic downturns. The future of real estate law practice in Greece looks more promising than ever, offering numerous opportunities for growth and specialization.
By Elmina Chadio, Partner, and Panayiotis Papageorgiou, Counsel, Papapolitis & Papapolitis
This article was originally published in Issue 11.7 of the CEE Legal Matters Magazine. If you would like to receive a hard copy of the magazine, you can subscribe here.
