Germans flock to local realty
Investors in Greek property not only finding bargains but also securing bank financing
Greece is evolving into the most popular destination for German property buyers. According to estimates by market players, during the last year, and especially after the pandemic subsided, German home buyers have emerged as the most active, surpassing the Chinese, who had a significant presence due to the Golden Visa program.
“During the last year and compared to the previous 12 months, we have recorded an increase in real estate searches in Greece by at least 70%,” says Marios Christodoulou, head of digital real estate platform Ferimmo. This platform is aimed at the entire German-speaking population of Europe – i.e. Germany, Austria, Switzerland and Luxembourg. It hosts approximately 40,000 properties from all over Greece, with a total value of over 6 billion euros, having entered into cooperation with more than 200 real estate agencies. In relation to 2021, there has been a 25% increase in the number of properties, while compared to 2020 that rise has come to 40%.
That rise is also reflected in the figures of the Bank of Greece concerning the inflow of foreign capital to the local real estate market: In the first half of the year there was a 61% increase to €788 million, compared to €488 million last year. In the second quarter alone, the relative size was €414.4 million, marking a year-on-year increase of 67%.
According to relevant analyses, it is estimated that the potential number of German real estate buyers in Greece exceeds 250,000. That translates into a potential market worth €4-5 billion over time.
However, to translate this interest into sales, additional moves are required. One of them is the recent collaboration between Ferimmo and Eurobank. The latter now offers special housing loans aimed at the European market, especially that of Germany.
“Every German citizen can now be financed to acquire a property in Greece, with a mortgage on the property itself, something that was not possible until now for non-permanent residents and non-Greek citizens,” says Christodoulou.
