Increase in foreign investment in real estate 43.4%

The first quarter of 2026 saw a significant surge in foreign direct investments in the Greek real estate market, with a 43.4% increase compared to the same period in 2025. According to data from the Hellenic Bank, capital flows from abroad reached 511.6 million euros during the first three months of 2026, surpassing the 356.8 million euros recorded in the corresponding period of the previous year. This upward trend highlights the continued attractiveness of the Greek property market despite a notable decline in applications for the "golden visa" program, which requires the purchase of real estate as a condition for obtaining residency permits.

Simultaneously, the number of applications for the "golden visa" dropped sharply, decreasing by 52.2% to 1,677 applications in the first quarter of 2026, compared to 3,507 in the same period of 2025. This decline suggests that while the golden visa program once played a crucial role in attracting foreign investment, its relevance is diminishing as investors increasingly prioritize property acquisition without the need for residency permits. The reduction in applications was partly due to the expiration of a special deadline that allowed certain investors to secure residency under lower investment thresholds, leading to a spike in requests during the previous year.

Foreign interest in Greek real estate remains focused on luxury properties in Athens and the islands, as well as newly built rural homes priced between 400,000 and 600,000 euros. These properties cater to a diverse range of international buyers, including Americans, Canadians, Middle Easterners, and Britons. Despite the reduced focus on the golden visa, many foreign investors still seek long-term residential options, either for personal use or as investment assets. A growing segment of these buyers, particularly those from North America, tend to view Greek properties as potential income-generating assets, especially for seasonal rental purposes or as second homes.

According to George Gabravilis, director of Elxis-At Home in Greece, there has been an 83% drop in demand for the golden visa program compared to 2025, while sales of rural properties have risen by 50% among American and Canadian buyers. This shift reflects changing priorities among foreign investors, who are increasingly looking for properties that offer both lifestyle benefits and financial returns. Many of these buyers are of Greek origin or have strong ties to the country, seeking to reconnect with their roots through property ownership.

Elxis also points to regulatory changes affecting the golden visa program as a contributing factor to the declining interest. Recent modifications to the program's terms have made it more difficult for investors to generate short-term rental income, thereby reducing the appeal of purchasing property solely for residency purposes. As a result, the demographic profile of buyers has shifted, with younger, more tech-savvy investors being replaced by older, more traditional buyers who are less interested in leveraging property for short-term gains.

This evolving landscape underscores broader trends in wealth distribution within Greece. A separate report by UBS reveals that wealth inequality has worsened, with the wealthiest segments of society experiencing substantial gains while the average citizen sees little improvement. Over the past five years, average wealth per adult in Greece has grown by around 9%, reaching approximately $143,343 (about €125,560). However, median wealth—representing what the typical citizen actually possesses—has declined by about 18%, dropping to roughly $59,162 (€51,820) by the end of 2025.

Despite this disparity, the number of millionaires in Greece has increased significantly, with the country now home to 82,000 millionaires, accounting for nearly 1% of the adult population. This represents a record high and indicates a growing concentration of wealth among a small portion of the population. Meanwhile, the Gini coefficient, a measure of economic inequality, stands at 0.6, placing Greece among the least unequal countries in the 56 markets studied, yet highlighting the uneven distribution of wealth.

On a global scale, private wealth has experienced rapid growth, increasing by 10% in 2025, driven largely by strong performance in financial markets and non-financial assets such as real estate. In Greece, real estate continues to dominate as the primary asset class, accounting for the bulk of household wealth. Financial assets, including bank deposits, stocks, bonds, and mutual funds, make up only 36.1% of total wealth, underscoring the central role of property in the Greek economy.

Looking ahead, the future of the Greek real estate market will likely depend on how effectively policymakers can balance the interests of foreign investors with the needs of domestic residents. While the current trend suggests a maturing market with a stronger emphasis on long-term value and lifestyle considerations, ongoing shifts in investor behavior and regulatory frameworks could continue to shape the trajectory of the sector. For now, the Greek property market remains a focal point for international capital, albeit one that is evolving in response to new economic realities.