Foreigners snap up Greek realty
This year will likely register an all-time high in inflows for the acquisition of property
Investment activity in the real estate market has now embarked on a path of full recovery. Bank of Greece data show that in the second quarter of the year capital inflows from abroad for the acquisition of real estate in Greece came to 414.4 million euros, an amount that represents an increase of 67% compared to the corresponding period last year.
At the same time, it is the best quarterly performance since the fourth quarter of 2019, when foreign funds had risen to €410.3 million, as well as the third highest ever. The all-time high for a quarter still belongs to the last three months of 2018, at €464 million.
Overall, in the first half of this year foreign capital inflows registered an annual increase of 61% to €788 million, compared to €488 million euros that had flowed into the country in the first half of 2021. Based on today’s pace and considering that traditionally real estate investment activity is stronger during the second half of each year, it is now almost certain that 2022 will mark not only the full recovery of foreign real estate investment since the outbreak of the pandemic and beyond, but at the same time it will also be a new full-year record high.
To date, the largest amount that flowed into the country in a calendar year was €1.45 billion in 2019. This year it seems this figure will be surpassed with ease and is likely to even approach €1.6-1.7 billion.
Another factor that seems to be mobilizing investors from abroad is the recent rise in interest rates. This has accelerated decision-making, as it is certain that borrowing costs will continue to rise in the coming quarters.
According to market sources, such as brokers and notaries, a large volume of buying and selling took place during the summer months, with foreign investors as protagonists, who have returned strongly after the hiatus of the previous two years, amid the pandemic.
Foreign investors’ top choices are apartments in the center of Athens, quality constructions in the southern suburbs of Attica and luxurious country houses in popular destinations.
