Greece’s Real Estate Market: A Brief History

Before even considering making a move in the vast realm of real estate investment, as an investor, you need to explore and learn the history of a market. Getting your facts and finding out the advantages and disadvantages should give any investor a head start. Looking at historical data should be crucial for an investor before pouring his funds into a venture. We’ve concluded that Greece is the next big foreign investor real estate hub, so let’s review how it came to these events and why it’s important to seize the opportunity before the situation changes.

Nowadays, each country faces issues with an overheated economy and high inflation numbers. Still, savvy investors know that this is not a stop sign but rather a green light to get into the data and figure out what the next investment move will be. 

We know foreign investors adore Greece for many reasons. Be it its breathtaking views, luxurious estates, rich history, or simply the affordable prices, which lead to a staggering statistic: 80-85 percent of real estate purchases were made by foreign buyers. That’s a 61 percent increase in the first half of 2022 alone.

But how did the Greek real estate market get there? What events lead to these rising numbers? Let’s take a deep dive into the history of the Greek housing market to find out. 

A Brief History of the Greek Real Estate Market

To put it very mildly, the Greek real estate market went through a tough time, with two market crashes devastating the housing prices. Now, despite the global economic havoc and diminishing setbacks each county faces, Greece decided it was time to bounce back. Property prices experienced historic lows but are now on the rise. This is how it all went down.

Greece’s housing bubble led to skyrocketing property prices in the early 2000s, with seaside properties rising between 30 and 40 percent annually. The housing bubble burst in 2008, aligning with the misfortunate events of the global financial crisis that hit the economy hard. Thus the prolonged recession began, with constant negative growth, and lasted until 2017, with brief moments of recovery in 2014. Despite the government’s efforts, negative growth followed throughout 2015-2016, after which the country emerged from recession in 2017.

Market Numbers

Now let’s look at the numbers. According to statistics, house prices fell by a staggering 42.5 percent from 2007-2017. However, 2017 was the year that marked the beginning of the recovery of the Greek housing market. In the following years, residential property prices continued to grow, with a 1.8 percent YOY in 2018, only to hit the 7.2 percent mark just two years later, in 2019. It all looked good in Greece at this point, but 2020 began with the Covid-19 pandemic, which significantly slowed down the surging of Greek house prices.

What was devastating for the real estate market in Greece was seen as an opportunity for foreign investors, which poured their funds into Greek property, positively impacting the economy and marking the beginning of prosperity. This was right around the time Greece got out of the EU/IMF financial assistance program back in 2018. 

Ever since then, property prices have experienced an upward trend, but that is still low when compared to historic highs and the overall state of the market from the 2000s. We know that it’s not a secret that when you choose the right time to buy property, this is when you make your earnings. 

The Unique Opportunity to Conquer Greece

Despite the slight recovery of the housing market, we can safely say that now is the time to enter the Greek market. The fact that it is a buyer’s market shows that luxury properties, vacation houses, holiday accommodations, and homes for retirement are in exceptionally high demand.

Locations that foreign investors should look out for are Mykonos, Santorini, Crete, and Corfu, of course, but do not hesitate to dive into the full-fledged European metropolitan experience and choose Athens. The Greek capital is a mixture of fast-paced, high quality, large city characteristics, and a breeze, beach, laid back lifestyle after an exhausting work day. Don’t forget the charming and rich expat community.

After looking into the market’s history, it’s simple to conclude that buying Greek property at this very moment is what investors should be doing. Feel lost in the sea of information and don’t know where to start? Contact Astrea to help you find your next significant investment and lead you through your foreign investment journey.