How increased demand from foreign investors is shaping the Greek real estate market.
- Nationalities investing in Greek properties
- Impacts on property prices
In recent years, the Golden Visa program has become widely known. It allows non-EU nationals or those without close ties to the EU to purchase properties in EU countries for easier access and residency rights. This program attracts investments, turning real estate into a small—or even significant—industry. Greece, with its highly competitive prices compared to the rest of Europe, is a prime destination. However, this creates ripple effects for local residents.
The Greek real estate market has seen rapid growth in recent years, largely driven by the Golden Visa program. Increased demand from foreign investors, particularly from countries like China, Turkey, Lebanon, the United Kingdom, and Iran, has led to significant activity in the property sector.
The minimum investment threshold for the program has now risen to €800,000 in Attica, Thessaloniki, Mykonos, Santorini, and other high-demand areas, while it is set at €400,000 for other regions.
Nationalities Investing in Greek Properties
According to the latest data from the Ministry of Migration, the majority of Golden Visa permits have been issued to Chinese investors, with over 6,520 permits granted by February 2025. They are followed by Turkish investors with more than 1,400 permits and Lebanese investors with nearly 800. British nationals, impacted by Brexit, are also turning to the Greek property market, securing over 500 permits, while Iran completes the top five with more than 300 permits.
Investors from these countries see Greek properties as an opportunity for stable returns, either through rentals or future capital gains. Affordable prices compared to other European capitals and Greece’s strategic location are key factors in their decisions. Notably, only 6% of these properties are used for personal purposes, while 94% are rented out, primarily through long-term leases. Interestingly, rental prices for properties owned by foreign investors are often more reasonable than those owned by Greek landlords.
This is because these investors are typically affluent individuals who purchase properties not for profit but to secure a foothold for their movements and activities within the European market.
Impacts on Property Prices
The heightened demand has put upward pressure on property prices, particularly in areas with strong tourism development. According to market data, prices have risen significantly in recent years, especially in central Athens and popular islands. This makes it increasingly difficult for Greek citizens to purchase properties, as prices reach levels that are often unaffordable. We’ve covered this in detail here and here.
On the other hand, the revitalization of previously low-demand areas contributes to the overall improvement of the market. Additionally, real estate growth has spurred construction activity, with new projects being developed to meet demand.
However, a major issue arises: the allocation of so many homes to foreign buyers results in fewer affordable rental options for locals, shrinking the pool of available housing and making it harder for residents to find reasonably priced accommodations.