The recent announcement that Athens has secured the 5th spot in the global housing market, marking an impressive 12% annual rise in prices for 2023, according to Knight Frank’s latest research among 107 major cities worldwide, is a testament to Greece’s enduring appeal and evolving economic landscape.
This remarkable achievement is not merely a statistical triumph; it mirrors the dynamic transformation that Athens has experienced in recent years. The Greek capital, once known primarily for its historical significance, is now being transformed to a contemporary real estate hub, attracting investors, homeowners, and global attention.
Going one step further, Knight Frank's global index further underlines that in the third quarter of 2023, Greece secured the 3rd highest position among 56 countries concerning the average annual increase in nominal prices. This global recognition affirms Greece as a significant player on the international stage.
The following metrics, presented by Alpha Bank, reflect the upward track witnessed in the real estate sector in Greece:
Gross Value Added (GVA):
The GVA of the construction sector has grown at a noteworthy pace since 2018. Specifically, construction GVA in Greece increased by nearly 11% annually during the period 2021-2022 and by 17.2% on a yearly basis in the first nine months of 2023.
Production Index in Construction:
The Production Index in Construction exhibited a growth rate exceeding 24% in 2022, marking the highest increase among the EU-27 countries. This trend continued into the first nine months of 2023, with a 13.4% annual increase. Notably, the building construction, primarily encompassing private constructions, witnessed a remarkable ascent of 16.7%.
Investment Dynamics:
The positive momentum extends to the dynamic increase in investments in construction, which have been on an upward track since 2020. Specifically, residential investments rose by 33.7% in 2022 and by 40.2% in the first nine months of 2023.
Real Estate Market Rejuvenation:
Simultaneously, the real estate market continues its robust recovery. Residential property prices increased by 11.9% in the third quarter of 2023 compared to the same period in 2022, and the annual increase in the first nine months of 2023 stood at 13.9%.
Overall, significant contributors to the Greek Real Estate Success Story are positive economic growth rates since 2017, increased investments in construction, Foreign Direct Investments (FDI) in properties, and the Golden Visa program. Specifically, FDI in properties rose by 29% in the first nine months of 2023, compared to the corresponding period in 2022.
Greek Real Estate appears to be particularly attractive for foreign investors, as they are recognizing the potential for solid returns in a country that seamlessly blends its rich past with a dynamic future.