Why invest in real estate in Greece?
1. A recovering real estate market
After going through a severe economic crisis in the 2010s, Greece has seen its real estate market gradually recover. Since 2018, property prices in Greece have been on the rise, with notable annual growth in some regions. This trend, combined with a still competitive property price compared to other Mediterranean destinations, makes Greece an attractive market for investors.
Prices remain affordable in many regions, especially on less touristy islands or rural areas, offering a strong potential for long-term valuation. Large cities such as Athens and Thessaloniki are experiencing a constant rise in prices, making these markets particularly attractive for rental investments or medium-term resale.
Our article on the real estate market
2. An attractive Golden Visa residency program
Greece offers a Golden Visa program that allows non-EU nationals to obtain a residency permit in exchange for a real estate investment. To obtain this visa, all you have to do is invest a minimum of 250,000 euros in a property (excluding tense areas). This amount is one of the lowest in Europe for similar programs, making Greece particularly attractive to international investors, especially those from non-EU countries.
The Golden Visa allows beneficiaries and their families to obtain permanent residency in Greece and to move freely within the Schengen area. This program attracts many Chinese, Russian, and Middle Eastern investors, among others, thus strengthening real estate demand in certain regions.
Our article on the Golden Visa
3. Changing regulations
While Greece could not inspire confidence until recently due to many barriers to investment, including its regulations (the lack of a land registry being one of the most glaring problems), the Greek authorities have largely focused their efforts on improving the situation. In 2011, a new law on cadastral regularization was adopted to speed up the implementation of this system. Since then, transparency has improved significantly, with a decrease in real estate without building permits or with undeclared extensions. Although not everything is perfect yet, Greece is moving in the right direction.
4. Exceptional climate and quality of life
Investing in real estate in Greece also means investing in an idyllic Mediterranean lifestyle. The country enjoys a mild and sunny climate almost all year round, with more than 300 days of sunshine annually in some areas. Whether you’re considering a second home or a rental investment, Greece is an ideal destination for those looking to combine business and pleasure.
In addition, the diversity of Greek landscapes – mountains, beaches, picturesque villages, and large cities – makes it possible to choose an investment location based on your personal preferences and those of potential tenants. The islands, especially in the Cyclades or the Ionian Islands, attract holidaymakers from all over the world, ensuring a high seasonal demand for holiday rentals.
The best areas to invest in Greece
1. Athens: A booming market
The Greek capital is one of the most dynamic cities for real estate investors. For several years, Athens has been experiencing an economic and tourist revival, with an increase in property prices in working-class neighborhoods. Neighborhoods such as Kolonaki, Plaka, or Koukaki are particularly popular for rental investments, due to their proximity to historical sites, modern conveniences, and transportation.
- Rental investment: With the rise in popularity of short-term rental platforms like Airbnb, real estate in central Athens can generate attractive rental returns. In addition, with the rise of tourism in Greece, the demand for vacation rentals continues to increase.
- Renovation and resale: Many old buildings can be renovated, thus offering the potential for added value when resold.
2. Thessaloniki: An Economic and Cultural Alternative
Greece’s second largest city, Thessaloniki is often cheaper than Athens, but it is attracting more and more investors thanks to its cultural dynamism and young population. With a large academic community and a thriving arts scene, Thessaloniki is an ideal city for those who want to invest in apartments for rent to students or young professionals.
The city is also in full development, with many infrastructure projects underway, which could drive up property prices in the coming years. Compared to Athens, Thessaloniki offers a very competitive price-performance ratio for investors.
3. The Peloponnese: Investing in tranquility
For those looking for a quieter option, the Peloponnese peninsula is an ideal destination. With its historic villages, stunning beaches, and easy access from Athens, the Peloponnese is an excellent area to buy a holiday home or rental property. Cities like Nafplio and Kalamata are particularly attractive to foreign investors, thanks to their historic charm and proximity to the sea.
The Peloponnese offers a wide range of real estate, from beachfront houses to villas in the hinterland. Prices are more affordable than on the islands or in Athens, but there is also significant growth potential, especially in tourist areas.
4. The Greek Islands: Dream Investments
Investing in a property on one of the Greek islands is a dream for many. The Cyclades, such as Santorini, Mykonos and Paros, are among the most popular destinations for high-end buyers. Prices are much higher than on the mainland, but tourist demand ensures a good rental yield, especially in high season.
For more affordable options, it is possible to turn to less touristy islands, such as Naxos, Syros, or the Sporades Islands. These islands offer a preserved natural setting and real estate at reasonable prices, with a strong long-term development potential.
5. Crete: A Growing Market
Crete, Greece’s largest island, attracts many investors due to its mild climate, natural beauty and still affordable prices. Cities like Heraklion, Chania, and Rethymno are popular for second homes and rental investments. Crete also enjoys a long tourist season, offering lucrative vacation rental opportunities.
Tips for a successful real estate investment in Greece
- Study the local market: Like any real estate investment, it is essential to be familiar with the region in which you are investing. Compare prices, growth prospects, and rental demand to maximize your chances of success.
- Call on a lawyer: In Greece, the role of the notary is not the same as in northern European countries. It is therefore highly recommended that you work with a local real estate lawyer to ensure that all aspects of the transaction are in order.
- Plan for additional costs: When buying a property in Greece, it is important to take into account additional costs, such as registration taxes, VAT, notarial fees, lawyers’ fees, real estate agency fees, etc.
- Have a good deposit: In Greece, 80% of real estate transactions are carried out without recourse to a mortgage. Since the 2008 crisis, the credit market has never really regained its momentum, which often requires paying cash. Although it is difficult to get a mortgage in Greece, it is still possible to do so from France.
- Think about seasonal rentals: If you don’t intend to live in Greece year-round, consider seasonal rentals to make your investment profitable. Platforms like Airbnb are very popular in tourist areas.
Conclusion: A real estate market full of potential
Investing in real estate in Greece is an opportunity to be seized, whether you are looking for a second home in the sun, a lucrative rental investment or a peaceful retirement. The country combines attractive prices, an advantageous Golden Visa program, a constantly increasing tourist demand, and an exceptional living environment. Whether in Athens, on a paradise island or in a dynamic city like Thessaloniki, Greece offers a multitude of possibilities for a successful real estate investment.
