Real Estate – Greece’s Magnet for Foreign Capital

Nearly half of all foreign direct investment is now flowing into property, especially residential real estate.

Greece’s real estate sector has firmly established itself as the country’s top destination for foreign capital. Over the past two years, nearly 50% of all foreign direct investment (FDI) has gone into property — primarily residential real estate.

According to a recent report by the Center for Planning and Economic Research (KEPE), the share of real estate in Greece’s total net FDI has grown dramatically over the past decade. In 2013, just 7.4% of foreign investment went into real estate. By 2018, that figure had surged to 33.5%, and it remained above 30% throughout 2019 and 2020.

Although the share dipped to 22% in 2021 and 24.6% in 2022 — due to a sharp rise in overall FDI reaching €7.5 billion — real estate investment made a strong comeback in 2023. As total FDI dropped to €4.48 billion, property investments accounted for 47%, totaling €2.1 billion.

This upward trend is expected to continue into 2024, despite a rebound in total FDI in the final quarter of 2023. According to the Bank of Greece, total FDI in 2024 reached €5.98 billion — nearly double the €3.1 billion recorded in the first nine months of the year. Two major deals played a key role: Masdar’s €2.5 billion acquisition of Terna Energy and Blackstone’s €235 million purchase of the Grand Hyatt Athens.

A significant driver of this investment wave has been Greece’s Golden Visa program. In 2024, there were 9,411 initial investor residence permit applications — an 11% increase from the record-breaking 8,477 in 2023. Since 2022, the program has attracted over €4.47 billion in foreign capital into the Greek real estate market.

In response to the program’s popularity, the Greek government has steadily increased the minimum investment threshold, prompting many investors to rush their applications before the new rules took effect. Market analysts expect activity to stabilize in 2025, shifting from speculative, visa-driven purchases to more traditional real estate transactions. However, demand remains strong in sought-after segments like luxury vacation homes, serviced apartments, and properties along the Athens Riviera — all of which offer attractive returns and are not subject to short-term rental restrictions.