Greek real estate market is a magnet for domestic and foreign investors

The Greek real estate market is currently at the center of European and international interest, with investors looking for opportunities for all sorts of real estate from residences, offices, storage spaces, and even land to be used and redeveloped for commercial and recreational purposes. Despite the new challenges, the Greek real estate market is showing exceptional resilience, according to estimates formulated at the annual Prodexpo conference during which the overall picture of the market was presented.

Residences in Greece are a magnet for foreigners

According to research presented during the Prodexpo conference, an increasing number of citizens from various foreign countries are looking for homes in Greece, with Athens, the Cyclades and Halkidiki being at the top of their preferences.

In particular, according to Spitogatos Insights research, one fifth of the total searches on the company’s platform come from abroad. The greatest interest comes from Germans, who are looking for properties throughout the country, mainly in mainland Greece, with Thessaloniki and Halkidiki being their top preferences. Second in searches is the USA, both by diaspora Greeks and by Americans, who are interested in buying a summer home in expensive areas, such as the Cyclades and the southern suburbs of Athens.

In third place we find the United Kingdom, where searches are also divided between diaspora Greeks and Britons. The focus is on residences in the center of Athens, the southern and northern suburbs and the Cyclades. Next come Spaniards, the Cypriots and the French, with the latter showing increased interest recently, especially in Paros, the rest of the Cyclades and the center of Athens. From the rest of the countries, the interest of the Bulgarians in relatively cheap real estate in Kavala and Halkidiki stands out, as well as the Israelis, who entered the list of top prospective buyers for the first time. The interest from Israel grows year by year in the center of Athens, the southern and northern suburbs and the Cyclades.

According to data also presented at the conference, significant demand for urban real estate comes from digital nomads as well as students, with demand falling short of supply as a large stock of real estate is in need of upgrading. However, this strengthens the growth prospects of the individual sectors of the economy which are linked to the real estate sector, such as construction.

International hotel chains give a vote of confidence to the real estate market in Greece

However, it is not only ordinary private investors from foreign countries who are looking for real estate in Greece. Leading international tourism brands come to Greece or strengthen their presence in the country by investing in the real estate market or taking over the management of hotel units.

Nikos Chantzos, Founder & MD, Hotellect Consultant, Marriott International noted the firm’s return to Greece because of opportunities. For his part, Leon Avigad, Founder & Co-Owner, Brown Hotels said that the group started the activity in our country out of love for Greece and then it became a business choice.

Ubiquitus urban renewal

Large investments are also made in  small and large renovations, by Greek and foreign firms. Reuse of old industrial sites after renovations for residential, commercial and recreational purposes is also underway. As Dimitris Andriopoulos, Dimitris Andriopoulos, president and CEO of Dimand said, “Greece is an opportunity in itself.” As mentioned by Antonios Robolis, associate professor at Panteion University, growing cities swallow the first industrial areas, with the result that these areas are now inside the city and the industries are moving to the outside.

Dimitris Manousakis, Managing Partner, KENTRIKI and International Associate of Savills, cited as a successful example the reuse of the former industrial facilities of Papastratos in Piraeus, saying that the effect on the area is very positive, with the development of many new uses.

Ellinikon leads developments and gathers the interest of strong international consortia

However, the largest urban regeneration not only in Greece but also in Europe which leads the developments in the real estate industry is in full progress in Ellinikon, as construction sites are opening one after the other creating new jobs which when the project is at full speed will reach 75,000, hopefully causing some reverse of the brain-drain.

Fluctuating factors also affect real estate sector

The energy crisis, rising interest rates, ESG challenges, increased construction costs and a host of other challenges are by no means leaving real estate investors indifferent. The most optimistic, however, see every new challenge as an opportunity and emphasize that properties and renovations that really have added value will endure. As mentioned at the Prodexpo conference, the market, not only domestically but also internationally, will diversify into quality real estate and second rate real estate. Investors will gradually come to see real estate and major renovations as a safe investment with more targeted placements in specific properties such as green buildings but also renovations that focus on sustainability, new technologies and living standards.