Greek Real Estate Market In 2023

Economic Outlook for Greece 

After facing several crises in the 2000s, the Greek economy has shown resilience and growth. Despite the uncertainties caused by the pandemic, the Greek economy is expected to continue expanding in 2023 and 2024. Experts forecast a real GDP growth rate of 1.0% in 2023 and a moderate growth rate of 2% in 2024. This positive outlook is attributed to the gradual recovery of private consumption and improved external demand.

To support the economy, the Greek government has implemented extensive support measures, including initiatives to mitigate the impact of high inflation and rising energy prices on businesses and households. These measures are aimed at increasing households’ real disposable income and fostering economic stability. As a result, the general government deficit is projected to decline from 4.1% of GDP in 2022 to 1.8% in 2023.

Athens: Leading the Greek Real Estate Market

Athens, the capital of Greece, continues to be the driving force behind the country’s real estate market. The city offers a diverse range of properties, including traditional villas, old apartments and new developments that blend seamlessly into the urban landscape. According to data from the Bank of Greece, Athens experienced the highest year-on-year growth in apartment prices in the third quarter of 2022, reaching 13%. This growth trend is expected to continue well into 2023.

While the overall real estate market in Greece has experienced growth, there are differences in growth rates depending on property type and location. For example, old apartments experienced a growth rate of 10.5%, while newer developments saw a growth rate of 12.2% in the last few months of 2022. Thessaloniki, the second largest city in Greece, also saw significant growth, with an 11.1% year-on-year increase in apartment prices. However, Athens remains at the forefront of the Greek real estate market.

Rising Interest Among Foreign Investors

The Greek real estate market has attracted considerable attention from foreign investors. According to the Central Bank, the share of foreign investors in the market increased by 60% in 2022 compared to the previous year, with an investment amount of approximately 1.28 billion euros. This influx of foreign investment highlights the growing confidence in the Greek market and its potential for high returns.

One of the factors contributing to this increased interest is the Golden Visa program, which was launched in 2013 to stimulate the housing market. The program offers residency to non-EU investors who purchase properties that meet certain criteria. Since its inception, the program has granted over 28,000 residency permits. In order to maintain financial stability within the housing market for Greek citizens, the government recently announced changes to the Golden Visa program. The minimum threshold for eligible real estate investment will increase from 250,000 euros to 500,000 euros in selected areas.