Sitting on the terrace of a hilltop villa overlooking the azure waters of the Aegean Sea, Sarah and John couldn’t believe their luck. What had begun as a casual vacation on the Greek island of Crete had turned into something much more life-changing—a decision to buy a house in Greece. They had spent years saving for a second home and considered properties in Spain, Portugal, and Italy, but none captured their hearts quite like Greece. The combination of stunning landscapes, rich history, and the allure of island living convinced them that this was where they wanted to invest their savings and future. They knew they had made the right choice as they looked out at the panoramic view of olive groves stretching to the sea. Houses for sale in greece
For Sarah and John, buying a home in Greece wasn’t just about real estate; it was about the lifestyle and culture of owning property in one of Europe’s most beautiful countries. But beyond the dream of owning a Greek home lies the reality of the market—its affordability, its legal processes, and the increasing demand from foreign buyers.
In this article, we will explore the current state of the real estate market in Greece, delve into the types of properties available, examine the prices and legal considerations, and discuss why now might be the right time to invest in a house in Greece.
The Appeal of Greek Real Estate: More Than Just Sun and Sea
Why Greece?
Greece has long been a popular destination for travelers worldwide, but it is increasingly becoming a hotspot for foreign real estate investors. The appeal is clear—Greece offers a unique combination of stunning natural beauty, historical significance, and an affordable cost of living, especially compared to other Mediterranean countries. Whether you’re drawn to the ancient ruins of Athens, the charming villages of the Peloponnese, or the whitewashed houses of the Cyclades, there is no shortage of picturesque properties in Greece.
The country’s real estate market is diverse. From seaside villas and mountain chalets to rustic stone houses and modern apartments, Greece offers a variety of options for buyers with different tastes and budgets. For many, the possibility of owning a home in such an idyllic location is too good to pass up.
One key factor driving interest in Greek real estate is the country’s relative affordability compared to other Southern European nations. While property prices in Italy, Spain, and France have soared recently, Greece still offers competitive prices, particularly in less developed areas. According to the Global Property Guide, the average cost per square meter for a property in Athens is around €1,500 to €2,500, significantly lower than in cities like Barcelona or Lisbon.
The Real Estate Market in Greece: Stats and Trends
Current Property Prices and Trends
The Greek real estate market has been on a rollercoaster over the past decade. Following the global financial crisis and the subsequent Greek debt crisis, property prices plummeted, leaving a surplus of homes and a hesitant market. However, since 2018, the market has rebounded significantly, driven by growing foreign demand, particularly in popular tourist destinations.
According to data from the Bank of Greece, property prices in Greece have increased by 9.6% year over year as of 2023. However, even with this growth, prices in Greece remain more affordable than in many neighboring countries, making it an attractive option for buyers seeking Mediterranean real estate. For example, homes can be found for as low as €100,000 in areas like Crete and the Peloponnese, while luxury villas in Santorini or Mykonos can command prices upwards of €1 million.
- Athens: Property prices in the Greek capital have sharply risen, particularly in sought-after neighborhoods like Kolonaki and Plaka, where the average price per square meter can reach €3,000 to €4,500. However, more affordable areas like Exarchia and Koukaki offer properties for around €1,500 to €2,000 per square meter.
- The Islands: The Greek islands are some of the most desirable locations for foreign buyers, especially those looking for vacation homes. Prices vary significantly by island. For instance, on Mykonos and Santorini, prices for luxury homes can range from €5,000 to €8,000 per square meter, while on more serene islands like Naxos or Syros, the price per square meter is typically closer to €2,000 to €3,000.
- The Peloponnese: For those looking for value, the Peloponnese offers more affordable options, with beautiful coastal homes available for around €1,200 to €2,000 per square meter. Towns like Nafplio and Gythio are seeing increased interest due to their proximity to Athens and lower property prices.
Foreign Buyers Driving Demand
One key driver of Greece’s real estate revival has been foreign investment. According to the Bank of Greece, foreign investors purchased nearly €1.45 billion worth of Greek real estate in 2022, a 60% increase from the previous year. Buyers are attracted to Greece’s relatively low prices, potential for rental income, and the country’s “Golden Visa” program, which grants residency to non-EU buyers who invest €250,000 or more in real estate.
The Golden Visa program has been particularly popular with investors from China, Russia, and the Middle East, though it has also attracted a fair share of European buyers. Many are looking for vacation homes and are interested in the rental market. In tourist-heavy areas, short-term vacation rentals have become lucrative, and investors are capitalizing on the steady influx of tourists. According to AirDNA, Airbnb rentals in popular destinations like Athens and Santorini can generate an average of €30,000 to €100,000 per year, depending on the property’s location and size.
Buying Property in Greece: What to Know
The Legal Process
Purchasing property in Greece as a foreigner is relatively straightforward, but there are important steps and legal considerations to be aware of. Greece has no restrictions on foreign ownership, meaning buyers from outside the country are free to purchase property, whether for personal use or as an investment. However, the buying process can take some time, particularly in rural or island locations where bureaucracy can be slow-moving.
Here’s a quick overview of the buying process in Greece:
- Find a Lawyer: It’s essential to hire a local lawyer to guide you through the legal process and ensure that the property’s title is clear of any debts or liens. Your lawyer will also be responsible for conducting due diligence on the property.
- Tax Number (AFM): To buy property in Greece, you must obtain a Greek tax number, known as an AFM, from the local tax office. Your lawyer can assist you with this step.
- Down Payment: Once you’ve found the property you wish to purchase, you’ll typically be required to pay a deposit of around 10% of the purchase price to secure the sale.
- Notary and Registration: The final sale must be completed in the presence of a notary, who will ensure that all documents are properly signed and registered with the Greek land registry.
- Property Transfer Tax: Buyers must pay a property transfer tax, typically around 3.09% of the purchase price. Additional costs such as notary and legal fees usually amount to another 1-2% of the purchase price.
The Risks and Rewards of Buying in Greece
Potential Challenges
While the Greek real estate market offers numerous advantages, it has. One of the most significant risks for buyers is Greece’s economic volatility. Though the market has stabilized in recent years, Greece’s history of financial crises should not be ignored. Buyers should be aware that the value of their property could fluctuate depending on the country’s broader economic health.
Additionally, infrastructure on some smaller islands and rural areas can be lacking. Roads, electricity, and water supplies can be unreliable, which may affect the quality of life and the value of your investment. For these reasons, conducting thorough research and possibly visiting the property multiple times before committing to a purchase are essential.
The Rewards: A Lifestyle Investment
Despite the challenges, the rewards of owning a property in Greece can be immense. Whether you’re buying as an investment or for personal use, owning a piece of the Mediterranean allows you to enjoy Greece’s relaxed lifestyle, warm climate, and rich history. For those investing in rental properties, the potential for generating rental income during the tourist season is another major benefit.
Greece’s position as a member of the European Union and the continued growth of tourism makes it an attractive long-term investment. For buyers like Sarah and John, the emotional and lifestyle benefits of owning a home in such a beautiful location are often the most valuable aspect of the investment.
Conclusion: Why Now Is the Time to Invest in Greek Real Estate
For those seeking a Mediterranean paradise, Greece presents an ideal opportunity to own a home in one of Europe’s most desirable destinations. With affordable prices, strong foreign demand, and the potential for personal enjoyment and financial gain, the Greek real estate market is primed for continued growth. Whether you’re looking for a seaside villa on the islands, a charming stone house in the countryside, or a modern apartment in Athens, there’s never been a better time to invest in a home for sale in Greece.
