Huge Drop in Foreign Investment Sparks Caution in Greek Real Estate Market

Foreign concern successful the Greek existent property saw a “spectacular” diminution of 17.8% successful the archetypal fractional of 2025 compared to the aforesaid play successful the erstwhile year. Credit: Greek Reporter

The Greek existent property marketplace is showing aboriginal signs of cooling aft 5 years of uninterrupted expansion, a displacement intelligibly evidenced by a crisp diminution successful overseas nonstop concern (FDI).

Foreign nonstop concern successful Greek existent property saw a “spectacular” diminution of 17.8% successful the archetypal fractional of 2025 compared to the aforesaid play successful the erstwhile year (dropping from €1,142.1 cardinal to €938.3 million), according to information from the Bank of Greece.

Market executives presumption this steep driblet arsenic a important inclination that requires contiguous monitoring. The value of this fig is underscored by the information that overseas superior was a cardinal catalyst for the market’s post-crisis recovery.

Context of Previous Growth (Bank of Greece Data):

Credit: Bank of Greece/Naftemboriki

While maturation was explosive successful 2022, the crisp diminution successful H1 2025 follows a much mean 3.5% summation successful H1 2024 implicit H1 2023. Market insiders clasp retired anticipation that the historically stronger 2nd fractional of the twelvemonth whitethorn mitigate the existent full-year decline.

The wide sentiment among marketplace leaders is 1 of caution and uncertainty, Greek fiscal regular Naftemboriki notes.

Greek existent property marketplace “numb and cautious”

Ioannis Revythis, honorary president of the Attica Real Estate Association, speaking to the newspaper, described the existent situation arsenic “numb and cautious, without a wide horizon.” He attributed the slowdown to respective circumstantial argumentation decisions and systemic issues:

• Golden Visa Reform: The accrued concern threshold for the Golden Visa residency-by-investment scheme.
• Short-Term Rentals: The escalating restrictions and regulations connected Airbnb-style short-term leases.
• Institutional Instability: Institutional delays and pending issues, specified arsenic the statement implicit the abolition of biology incentives successful the New Building Regulations (NBR) and the deficiency of broad spatial planning, make insecurity for ample investors.

While concern slows, the halfway lodging marketplace continues to look a important challenge:

Price Escalation: The yearly complaint of flat terms summation for the full state deed 7.3% successful Q2 2025 (Bank of Greece data).

This summation is fueled by operation outgo ostentation and a persistent cardinal imbalance wherever request from emblematic households continues to outstrip supply.

Market executives mention the inability of an mean household to spend lodging costs (purchase oregon rent) arsenic the cardinal issue, prompting predictions of a apt terms correction starting successful 2026.

Related: Greece Emerges arsenic a Top Real Estate Destination for Turkish Investors