Over the past few years Greece has emerged as one Europe's most enticing investment destinations. The Greek property market has exhibited consistent growth, bolstered by government measures aimed at ensuring stability.

The Greece Golden Visa program stands out as a unique opportunity for foreign investors to secure residency. Under this program, foreign nationals can gain residency by investing as little as €250,000 in Greek property, potentially paving the way for Greek citizenship.

Let's address the central question for those considering residency or citizenship through investment: Is the Greek property market a sound investment beyond gaining EU residency? The answer is a resounding "yes." Let's delve into why Greece's property market is such a promising opportunity.

Let the Numbers Talk

The fight against inflation and rising interest rates has set the stage for a consistent uptick in real estate prices in Greece since 2021. In 2022 alone, the per-square-meter cost in the country increased by approximately 8-10%.

Data from Alpha Bank for the first quarter of 2022 paints an optimistic picture of the national real estate market. It revealed robust annual growth in housing investments at 18.6%, while nominal residential property prices showed a year-over-year increase of 8.6%.

As we approach the end of 2023, Greece has witnessed a substantial volume of real estate transactions, involving both local and international investors. Statistical evidence confirms that Greece's real estate market is flourishing, primarily driven by heightened interest from foreign investors.

In simpler terms, Greece's property market is currently a paradise for real estate investors. It offers a diverse range of properties, including commercial spaces, highly lucrative private rental apartments, student housing projects and luxury villas. Athens, in particular, stands out for its variety and multifaceted property landscape.

However, not all growth in Greece's dynamic property market is equal. Data from the close of 2022 reveals intriguing disparities. Older apartments experienced solid growth at 10.5%, while newer developments soared even higher at an impressive 12.2%. Athens' real estate scene is undoubtedly a captivating tale of diversity and growth.

Golden Visa Boosts the Greek Property Market

The Central Bank reports that foreign investors' participation in the real estate market surged by 60% in 2022 compared to the previous year, with a total investment of around €1.28 billion.

An increase in demand for Greece's Golden Visa has played a significant role in driving the growth of the real estate market. In the first half of 2023, foreign nationals pursuing the program invested over €1 billion in property. This represents a remarkable threefold increase compared to the same period in the previous year when it stood at €361 million.

In July 2023, the Greek government implemented new rules, raising the minimum investment threshold in popular areas of North, South, and Central Athens, Mykonos, Santorini, and the Municipalities of Thessaloniki and Vari. The aim is to maintain property affordability for Greek citizens and prevent an excessive influx of foreign investment in these regions. Nevertheless, the €250,000 minimum investment requirement remains in effect for the majority of Greece's territory.

Where to Invest in Greece

Variations in growth rates in the Greek property market extend beyond property type to location. Athens emerged as the leader in year-on-year apartment price growth, boasting an impressive 13% increase. In Thessaloniki, Greece's second-largest city, the growth rate stood at a substantial 11.1%. It's clear that Athens is poised to maintain its position as the driving force in the Greek real estate market through 2023.

The Athenian real estate market offers a wealth of opportunities to potential buyers. Given the city's substantial size and diversity, a wide array of property types appeals to investors. From timeless standalone villas to commercial properties or shares in hotels, all variations seamlessly merge into the city's iconic skyline. Athens is where tradition meets innovation with grace. As per the new golden visa rules, investors pursuing the Golden Visa now need to invest a minimum of €500,000 in the majority of Athens (still remarkably reasonable for a capital city).

However, the up-and-coming neighborhood of Piraeus still offers Golden Visa properties at a minimum investment of €250,000.

Invest Now in the Greek Property Market

Greece, renowned as a top-tier tourist hotspot, presents an irresistible opportunity for property investment. For those with solid financial foundations seeking the perfect blend of comfort and exclusive natural experiences, investing in coastal Greek properties is an alluring prospect. Greece offers competitive advantages, particularly in terms of attractive pricing, compared to several European destinations considerably farther away. All this is within arm's reach of the enchanting Aegean Sea's turquoise waters.

Greece's tourist season spans over five months, commencing in May, hitting its zenith in July and August, and gracefully concluding in October. Hospitality and tourism are deeply ingrained in Greek culture and upbringing. During the summer tourist season, restaurants, bars, taverns, and cafes come alive, welcoming visitors around the clock.

One of the safest investments in Greece is acquiring property for rental purposes, assuring a guaranteed return and income when managed efficiently. Imagine planning a family vacation while renting out your property for the remainder of the season. Whether for short, medium, or long-term rentals, Greek properties can yield up to an impressive 10% return on an annual basis, calculated as the ratio of property price to realized profit.

Greece anticipates a gradual increase in the price per square meter over the next three years, expected to rise by approximately 35-40%. This robust projection offers the assurance that, in just three years, you'll be in a position to sell your property at a significantly improved price point. Greece truly offers a golden opportunity for property investment and appreciation.

Buy in Greece with Lincoln Global Partners

Lincoln Global Partners assists global citizens on their investment abroad journeys. Contact us today for a free 30-minute consultation to discuss your investment options in the Greek property market.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.