Greece Real Estate Attracting Foreign Capital Inflows
Foreign investors injected the Greek economy with 503 million euros in capital in 2017 for the purchase of property, according to Bank of Greece data, marking an 86.5 percent increase compared to 2016, the highest in the last decade.
The impressive rise demonstrates that demand for housing and other real estate by foreign buyers has picked up returning to pre-crisis levels with 2016 recording the largest inflow of foreign funds since the start of the crisis, at 270 million euros.
The trend according to analysts reflects a rebound in non-resident investor confidence in Greece and in its future prospects for growth particularly in the property market and compared to other markets.
At the same time, Greece’s booming short-rental sector is an added incentive with many buyers opting to purchase properties in Athens and at other popular tourist destinations in order to benefit in the long run.
According to Enterprise Greece data, approximately 70 percent of buyers opted for property in the wider area of Attica: 26.52 percent in the greater Piraeus area, 21.26 percent in the center of Athens, and 20.8 percent in the Pallini area.
The golden visa program, which grants a five-year residence permit renewable for third country nationals who purchase – individually or through a legal entity – property in Greece valued at a minimum of 250,000 euros, or who have taken out a minimum 10-year lease in hotel accommodation or tourism facilities is also strengthening demand for real estate. Indicatively, more than 560 residence permits were issued to foreign buyers over the January-November 2017 period, the majority to Chinese investors, followed by Russians and Turkey nationals.