Foreign property buyers reinvest their gains

Price hikes in Greek housing accelerated further in the first quarter of the year, according to data published on Monday, forcing many local buyers into changing their preferences and downsizing investment choices, experts say.

Hariton Triandafilidis, co-founder and CFO of Real Vaha, a real estate advisory company that specializes in hospitality projects and residential property, said the price rally seen in homes across the country has left many Greek buyers “in shock,” wondering whether the market will cool before taking the plunge to buy a place.

“Others, however, are just as determined to acquire a home now and fear that they might miss out on this upward price cycle if they wait for six months or a year,” Triandafilidis told Kathimerini English Edition.

Despite property coming under pressure in many parts of Europe amidst rising interest rates, demand for residential assets in Greece remains robust, particularly in Athens and Thessaloniki.

The latest data released by the Bank of Greece, the country’s central bank, on Monday show that home prices jumped by 14.5% in the first quarter of the year, after climbing more than 11% last year and 7.6% in 2021. In Athens, prices soared by 16.5% in the January-March period.

Rising property values have left many Greek buyers in despair as income levels have barely inched ahead in recent years. On the other hand, buying momentum from foreigners, who invested a record amount of nearly 2 billion euros in Greek property last year, continues to pick up.

“When it comes to foreign buyers, it is business as usual. A number of them have started selling and taking gains from acquisitions made 3-4 years ago in Greece and developments being finalized in Athens and the islands. This means they have plenty of cash to spend,” said Triandafilidis.

“Up until now, many foreign players were on the sidelines but are now aggressively bidding for property as confidence in the country grows. The fact that the first movers who bought in Greece have made money is drawing a larger pool of buyers from more countries, such as the Middle East and Scandinavian nations. We believe this trend will continue for some time yet,” he added.