The new data comes as a result of changes to the Golden Visa investment migration program, as well as geopolitical developments in the wider region. Moreover, the data shows that every second foreign buyer of real estate prefers Greece for investment purposes, and every fifth buys for the purpose of acquiring home ownership.
Indicative of this strong interest is that real estate market in Greece continues to attract capital from third countries: in the first half of 2023, the country’s economy will receive about 1.102 billion euros from abroad, which means a 40 percent increase compared to the same period in 2022.
In fact, doubling the minimum amount for foreign investors from third countries who obtain residence permits through the property market has reportedly not “reduced” the number of transactions, as research carried out by property network RE/MAX Hellas confirms that foreign investors have consistently and over time choose the Greek real estate market, while many of them are those who come to Greece for permanent residence after retirement. In particular, data obtained from transactions carried out across the country last year through 81 RE/MAX offices shows that Greece is one of the most attractive destinations for foreign buyers.
Buyer Profile
It is worth noting that in recent years a large percentage of foreign buyers have chosen to purchase residential property in Greece either for tourism purposes or for permanent residence after retirement. Of great interest are the qualitative characteristics of the same survey, which capture the profile of foreign buyers in Greece, including their nationality and age, price and the type of property they choose.
Important information:
- Israelis ranked first among the top five countries for property buyers in Greece.
- 4 out of 10 buyers belong to the age group of 40 to 50 years.
- 3 of the 10 properties selected for purchase were priced up to €100,000.
- The most popular choice, with 46%, was apartments.
Buyers’ countries of origin
Among the top five countries of origin for foreign property buyers in Greece Israel takes first place, followed by China and Germany, in second and third place respectively, and neighboring Bulgaria and Turkey round out the top five. However, significant purchases were also recorded from other countries, dominated by European Union member countries – Italy, France and the Netherlands, as well as Great Britain, which recently left the union.
Distribution by region
Regarding the geographical distribution of investments, in Northern Greece there was high demand resulting in purchase transactions from buyers coming from Germany, Bulgaria, Serbia and Turkey, while in Southern Greece the majority of recorded purchases were made by citizens of Israel, China, Germany and Lebanon. The shopping landscape was somewhat different in the Ionian region and Crete. In the first case, British, German and Dutch buyers showed great interest, while in Crete the majority of buyers were from Israel, Germany, Great Britain and France.
In Attica, the trend appears to have diversified further from the rest of Greece, with China in first place and Israel in second, followed by France, Germany and the UK. Finally, purchases were also made from the Middle East (United Arab Emirates, Lebanon, Iran, Syria) and Turkey.
Preference for properties costing less than 100,000 euros
The Golden Visa program has seen an “explosion” in recent months, despite the government’s announcement of an increase in the investment threshold that motivated potential investors last year.
According to data provided to NEA by the Department of Immigration and Asylum, in the first nine months of 2023 there were 6,199 applications for entry into the program (7,541 including extension requests), exceeding the initial total of 4,485 applications (5,891 including extension requests) submitted to 2022. What is significant is that from 336 applications submitted in September 2022, the number jumped to 707 in the same month this year.
Indicative of the… momentum the program has gained in 2023 is the fact that of the total 23,963 applications (new and renewal) filed in the country from 2018 to date, almost half (10,750) were filed between September 2022 to September 2023. At the same time, 3,638 initial golden visa applications remain pending.
As for permits issued between September 2022 and September 2023, there is again a significant increase of almost 50% compared to all of 2022 – from 2353 to 3530. Of the applications submitted, the majority of applications that remain pending are from investors from China and reach 71.1%, followed by investors from Turkey (7.5%) and Lebanon (3%).
Chinese dominance
Almost two out of three permits issued to date under the Golden Visa program involve applications from investors from China – 6,927 or 61.2% of all permits. They are followed, by a wide margin, by investors from Turkey and Lebanon – with 6.3% and 5.1%, respectively, and the top five is completed by permits issued to investors from Iran (3.1%) and the UK (2.9%). . Russia (2.9%), Egypt (2.8%), USA (2.2%), Israel (1.4%) and Ukraine (0.9%) round out the top ten. Investors of other nationalities account for 11.1%. It should be noted that in the past, Russian investors occupied the top positions of bids, but after the imposition of sanctions due to the war in Ukraine, their share decreased significantly.
Trends
According to a detailed list of properties preferred by foreign buyers, in 33 cases out of 100 the cost of the properties was below 100,000 euros. 27% of properties had a value between 100,001 and 200,000 euros, the same percentage was found for properties valued between 200,001 and 300,000 euros (28%). The most expensive properties, costing more than €300,001, were favored to a lesser extent, accounting for only 12% of the total. Real estate in Greece continues to be a reliable investment option for foreign buyers: every second purchase is made for investment purposes (49%). The next most preferred category is recreational properties (vacation homes) at 22%, followed by owner-occupied properties at 20%.
According to the latest data from the Bank of Greece, net foreign direct investment in Greece grew by 32.9% per annum in 2023 to €500 million (€497 million in particular), continuing the strong trend of the previous year, during which average annual growth was recorded by 68% (total €2 billion in 2022). Thus, in the second quarter of this year, an additional 605.8 million euros were received from abroad (+46% compared to last year), which indicates the attractiveness of the domestic real estate market. It should be noted that in the first half of 2022, 374 million (out of 788.4 million in total) “entered” the country in the first quarter and 414.4 million in the second.
As for what is driving this mobility, market participants tell the NEA that Greek real estate has continued to grow and the Golden Visa programs, coupled with short-term rentals and prices being considered lower and therefore more attractive than other markets played a role in attracting foreign capital.
The continued interest of Israeli funds in the domestic real estate market. Following the outbreak of military conflict between Israel and Hamas in the Middle East, there was considerable concern in the domestic real estate market about how Israelis would move now, given that they are one of the most popular nationalities among foreign property buyers in Greece and especially Attica. According to the Ministry of Immigration and Asylum, there has been a slight increase in interest in golden visas from Israel in recent weeks, while ship arrivals are being recorded in the Dodecanese.
War
Speaking to NEA, the president of the Attica Real Estate Association, Lefteris Potamianos, emphasizes that in recent years there has been a general trend of numerous purchases and investments of Israeli capital, but he notes that it is too early to draw any firm conclusions about war-related movements. He says that amid the clashes, two important contracts for the purchase of real estate in Athens were signed last week. One is Israeli and the other is Lebanese. However, at the same time, negotiations for the purchase of three different properties were frozen as potential buyers from Israel were recruited.
Investors from Israel issued 159 residence permits (not counting their family members), representing 1.4% of the total number of permits. In fact, from September 2022 to date, there has been a significant increase – by 76.5%, from 90 permits to 159. Sources in the relevant ministry said that in September 2023, 38 applications were submitted from Israelis, and in the first 20 days of October – 24 applications.
Tellingly, Bank of Greece data also shows that in 2022, investors from Israel made property purchases worth €88 million in Greece, up 100% year-on-year, making them the seventh largest investor group in the domestic real estate market.
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