Foreign buyers replace Greeks

Demand by Greeks for the purchase of property is in decline, linked to the estimates for a slight slowdown in the rate of price growth by 2025, per the latest survey by the Spitogatos.gr network, while interest from abroad keeps growing.

According to the analysts, in the first quarter of this year demand for buying residential property decreased annually by 4.2%, while international interest increased by 11.8%. The shrinking of deposits and the intention to save, at least among certain categories of the population (e.g. office workers, employed in the provision of services), as demonstrated by a recent study by Alpha Bank, combined with the significant strengthening of asking prices, are behind the decline in domestic demand.

On the contrary, foreign investment interest in the real estate market has been increasing over time, after the 5% growth in international demand in 2023, compared to 2022. According to Spitogatos.gr, investment interest from abroad comes mostly from the UK, Germany and the US and is focused on the center of Athens, Halkidiki and the southern suburbs of Attica.

“Real estate prices in Greece remain lower compared to many countries abroad, which acts as a magnet for foreigners who are not only looking to secure returns, but also wish to relocate to a popular tourist destination. At the same time, Americans’ and Britons’ goal of securing visas has dramatically strengthened the demand from these countries,” explains Kosmas Theodoridis, president of the European Real Estate Brokers Association, to Kathimerini.

In the short term, as Bank of Greece Governor Yannis Stournaras estimated in his latest report, demand from abroad will remain strong, while “prices are estimated to continue their upward trend in the high-end segment of the market, dragging prices along in secondary markets.” 

According to the Spitogatos.gr research, prospective buyers who focus on the center of Athens are more interested in apartments, detached houses and studios. In the southern suburbs, detached houses, maisonettes and apartments attract foreign buyers.