Property buyers’ origins shift

Foreign funds of over 5 billion euros have flowed into the Greek economy via the real estate market in the period from 2017 to 2021, according to Bank of Greece data.

If the €788 million that has been invested in local realty in this year’s first half are taken into account, that amount increases to almost €5.8 billion, showing an increase of 61% from last year.

Were it not for the pandemic, which tamed the buyers wave, that sum would have been much higher. However, according to central bank figures, only €1.85 billion flowed in from fellow European Union countries during the 2017-2021 period, against €3.27 billion from countries outside the bloc, due to the Golden Visa scheme.

This program came into force in mid-2014, but it really started to pay off from 2017 onward, mainly thanks to the low prices in the Greek market and the increase in the appeal of short-term rentals. The program is currently under review, with the main change planned concerning the doubling of the minimum investment amount for a residence permit, from €250,000 to €500,000.

This is also reflected in the origin of buyers, with the Chinese accounting for €1.2 billion euros from 2017 to 2021. Inflows of €437 million came from mainland China and €973 million from Hong Kong, owing to the capital controls in China.

An additional €167 million has flowed in from Singapore, partly linked to Chinese investors.

In 2021 40.2% of foreign capital invested in Greek real estate came from EU countries – €473 million out of a total of €1.17 billion – up from 37% in 2020.

Among the Europeans, buyers from Cyprus are at the top with €466 million, while those from Germany (including many expatriates) have invested €312 million. French buyers invested €80 million last year, up from €37 million in 2020.

An additional €391 million flowed in from Switzerland, while British buyers spent €176 million on property in Greece. Israeli investors are ranked 10th, having invested €161 million euros.