The Greek real estate market is showing early signs of cooling after five years of uninterrupted expansion, a shift clearly evidenced by a sharp decline in foreign direct investment (FDI).
Foreign direct investment in Greek real estate saw a “spectacular” decline of 17.8% in the first half of 2025 compared to the same period in the previous year (dropping from €1,142.1 million to €938.3 million), according to data from the Bank of Greece.
Market executives view this steep drop as a significant trend that requires immediate monitoring. The importance of this figure is underscored by the fact that foreign capital was a key catalyst for the market’s post-crisis recovery.
Context of Previous Growth (Bank of Greece Data):
While growth was explosive in 2022, the sharp decline in H1 2025 follows a more moderate 3.5% increase in H1 2024 over H1 2023. Market insiders hold out hope that the historically stronger second half of the year may mitigate the current full-year decline.
The general sentiment among market leaders is one of caution and uncertainty, Greek financial daily Naftemboriki notes.
Greek real estate market “numb and cautious”
Ioannis Revythis, honorary president of the Attica Real Estate Association, speaking to the newspaper, described the current environment as “numb and cautious, without a clear horizon.” He attributed the slowdown to several specific policy decisions and systemic issues:
- Golden Visa Reform: The increased investment threshold for the Golden Visa residency-by-investment scheme.
- Short-Term Rentals: The escalating restrictions and regulations on Airbnb-style short-term leases.
- Institutional Instability: Institutional delays and pending issues, such as the debate over the abolition of environmental incentives in the New Building Regulations (NBR) and the lack of comprehensive spatial planning, create insecurity for large investors.
While investment slows, the core housing market continues to face a significant challenge:
Price Escalation: The annual rate of apartment price increase for the entire country hit 7.3% in Q2 2025 (Bank of Greece data).
This increase is fueled by construction cost inflation and a persistent fundamental imbalance where demand from typical households continues to outstrip supply.
Market executives cite the inability of an average household to afford housing costs (purchase or rent) as the central issue, prompting predictions of a likely price correction starting in 2026.
Related: Greece Emerges as a Top Real Estate Destination for Turkish Investors
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